OnePath Life and Zurich has announced its intention to make a joint application to transfer OnePath Life’s life insurance business.
The two firms had made a joint application to the Federal Court to transfer OnePath Life’s life insurance business to Zurich under the Life Insurance Act 1995.
This followed the completion of a deal three years ago for OnePath Life to become part of the Zurich group. Until now, the two firms had competed with each other in the open market.
In a statement, Zurich said: “The proposed transfer is a key milestone and the final step in the process of formally bringing together the businesses of our two Australian life insurers. This consolidation will also assist us in managing our regulatory requirements more efficiently and simplify financial, operational and administrative processes”.
The confirmation hearing was scheduled to take place on 6 July, 2022 and the proposed transfer was intended to take effect on 1 August, 2022.
Should the scheme be confirmed, OnePath Life policies would be treated as if they had been issued and administered by Zurich rather than OnePath Life. OnePath Life would retain assets to meet regulatory capital requirements.
