Zurich Financial Services Australia is continuing to divest itself of non-core distribution channels by announcing it will relinquish its 39.7% holding in Melbourne-based planning business Australian Financial Services (AFS).

A Zurich spokesman says AFS initiated the break-up and that Zurich is now keen to focus on its core business functions – insurance and funds.

If the proposal to pull out of AFS goes ahead, it will be 100% privately owned by its advisers.

Recently Zurich also announced it will be reducing its holding in the 163-planner Lonsdale Financial Group.