International insurance giant Zurich has announced an agreement to buy ANZ's life and consumer credit insurance business OnePath Life for $2.85 billion.
The takeover, which is subject to regulatory and other approvals, will result in Zurich becoming Australia's largest retail life insurer as measured by inforce premium, the insurer said in a statement on Tuesday.
The takeover announcement was made on the Swiss stock exchange and a press conference will be held in Sydney later on Tuesday.
It will allow Zurich to significantly expand, via a 20-year agreement for the distribution of life insurance products through ANZ's bank distribution channels, and an opportunity to establish a strategic alliance with IOOF.
"Securing a long term partnership with one of Australia's largest banks and an opportunity to establish a strategic alliance with the second largest advice business in the market will provide us a fantastic base for continued growth," CEO of Zurich's Australian Life and Investments business, Tim Baily, said in the statement.