Switzerland's Zurich Insurance Group AG (ZURN.EB) said Monday that it will buy Australia & New Zealand Banking Group Ltd.'s (ANZ.AU) life-insurance business in Australia for about $2.14 billion.
"The acquisition is expected to contribute to the Group's profitability from day one, generating strong cash flows which will support future dividend growth," Zurich said.
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Zurich said it will initially pay 1 billion Australian dollars ($750.6 million) in reinsurance commissions to ANZ when the deal receives regulatory approval, with the remaining balance to be paid on completion.
The acquisition will provide Zurich with roughly a 19% market share in Australian retail-life insurance, the company said.
The deal, which will be funded through cash and senior debt, is expected to cause a modest reduction to Zurich's capital position, the company added.
The announcement comes on the heels of a string of Asia-Pacific acquisitions by Zurich, including the takeovers of Macquarie Group Ltd.'s (MQG.AU) life-insurance business in 2016 and Australian travel-insurance provider Cover-More in April.
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(END) Dow Jones Newswires
December 11, 2017 12:46 ET (17:46 GMT)