ANZ has flagged the sale of its OnePath life insurance business, although it will continue distributing products from the division.

It comes after the bank sold its Asian wealth operation to Singaporean bank DBS, because it was considered a non-core business.

ANZ CEO Shayne Elliott says a review of Australian and New Zealand operations concluded when the decision to sell the Asian business was made.

It found that “while the distribution of high-quality products and services should remain a core component of the group’s overall customer proposition, ANZ does not need to be a manufacturer of life and investments products”.

He says the bank’s “initial focus will be on the Australian wealth business, where ANZ is exploring a range of possible strategic and capital market options”.

These include the sale of OnePath and its advice channels.

Mr Elliott says a sale of the New Zealand wealth business will be considered separately next year.

OnePath’s inforce premium grew 6% to $1.6 billion for the year to September 30.

Individual and group life both made solid inforce premium increases, with the former up 6% to $1.1 billon and the latter rising 5% to $445 million.

The lapse rate for the life insurance business grew to 14% from 13.3% the previous year.

OnePath made a pre-tax profit of $362 million, up 5%.