With Zurich set to take on all of Macquarie Life’s customers, the insurer has confirmed there will not be any changes to the terms and conditions of their coverage.
Last week Risk Adviser reported that Macquarie Group had entered into an agreement with Zurich for the sale of its Macquarie Life insurance business.
Following the announcement, Zurich said the acquisition of the business would result in all existing Macquarie Life policy holders becoming customers of Zurich, but added that there will be “no change to the terms and conditions of their coverage”.
Macquarie Life's products will continue to be offered to new customers under the Macquarie brand up until the completion of the sale, Zurich said.
Furthermore, Macquarie Life’s Australia-based staff will transfer to Zurich as part of the agreement between the two companies.
Commenting on the acquisition of the business – which is subject to regulatory and court approvals – Zurich’s Asia Pacific global life CEO Colin Morgan said purchasing the business from Macquarie “accelerates” its growth strategy for the Asia-Pacific region.
“Our growth ambitions in the Asia-Pacific region are underpinned by a strategy which drives value from our balanced portfolio of growth and mature markets and leverages our distinctive capabilities across the region,” Mr Morgan said.
“Our Australian life business has experienced strong growth over the last five years in particular, and is a major contributor to the strength and profitability of Zurich’s Asia Pacific regional Global Life business,” he said.
Also commenting on the acquisition of the business, chief executive of Zurich’s life and investments business, Tim Bailey, said it was “consistent” with the company’s “long-term strategic intent” in terms of presence in the Australian marketplace.
“The acquisition will enhance both our scale and overall capability and will allow us to further strengthen the proposition which has been a key driver of our recent growth trajectory,” he said.