The Federal Court of Australia yesterday approved the transfer of Macquarie Life’s risk business to Zurich Australia Limited (Zurich).
The completion of the court and regulatory approval process means that the transfer of Macquarie Life’s risk insurance portfolio, including FutureWise, Active and Sumo policies, to Zurich can now proceed.
The confirmation of the acquisition sees the creation of Australia’s 4th biggest1 life insurer in the IFA segment. It will also see Zurich bring an expanded product and service offering to market from October 1st.
From this date, FutureWise, Active and Sumo policies will be offered alongside Zurich’s existing Wealth Protection product range, providing customers with a broader range of solutions under the Zurich brand umbrella.
This date will also see Macquarie Life staff transfer to Zurich, significantly expanding its sales and service capacity and contributing to the continuation of award winning service levels to an inforce customer base that will grow 60% as a result of the acquisition.
Mr Tim Bailey, CEO of Zurich’s Life and Investments business in Australia, said the Court approval marked a major milestone for Zurich’s Australian business which strengthens its commitment to the local market and accelerates the strong growth trajectory it has seen over the last five years.
“This acquisition sees the coming together of two businesses which share a track record of customer service excellence and a commitment to the retail advice sector”, he said.
“The opportunity to add to our product set – particularly the innovative Active and Sumo offerings– is also an exciting one, broadening the range of solutions that are backed by our global brand strength.
“Our capability to support advisers in growing their practice and improving their own customer proposition will also be significantly strengthened, with our award winning Business Development presence being added to in every mainland state.”
From the date of transfer – currently planned to be October 1st – Zurich will also assume complete responsibility for administering all in force Macquarie Life risk insurance policies – including FutureWise, Active and Sumo policies, as well as managing all new and existing claims.
No action is needed by existing customers, with the terms and conditions of their cover, its cost, and their chosen payment method all unaffected by the transfer.
“Both existing and new customers can benefit from the best of both worlds, with the creation of a bigger, stronger business opening up access to new solutions and the added confidence that they are protected by a leading global insurance group who will be there when it matters most”, said Mr. Bailey.
