Macquarie Group is selling its life insurance business to Zurich Australia Limited.
Macquarie ended weeks of media speculation today when it announced the transaction which is subject to regulatory and court approvals.
The company said the transaction was expected to be completed in the second half of the year, with the insurance business staff transferring to Zurich as part of the acquisition.
Following completion of the transaction, Macquarie Life policyholders will become customers of Zurich, who will honour all obligations under new and existing policies.
The acquisition of the Macquarie life insurance business would represent a significant re-entry to the life market for Zurich.