Macquarie Group on Friday said it has entered into an agreement to sell its life insurance business to Zurich Australia Ltd.
The transaction, which is subject to regulatory approvals, is expected to be completed in the second half of 2016, Macquarie said in a statement. It did not disclose the terms of the transaction but said it was “not material” to the group.
“The sale of the business reflects the need for significant scale in the capital intensive life insurance industry in order to drive appropriate returns,” Greg Ward, head of Macquarie’s Banking and Financial Services Group, said in a statement.
At 0233 GMT, Macquarie shares were up 1 percent in a flat Australian market.
Source: Reuters