Zurich Australia will buy Macquarie Life for an undisclosed sum, and says all staff will be transferred when the deal is finalised in the second half of this year.

Macquarie Life policyholders will become Zurich customers, with no changes to terms and conditions.

Until the takeover is completed Macquarie Life products will continue being offered to new customers under the Macquarie brand.

Zurich CEO Life & Investments Tim Bailey says Macquarie Life is highly regarded for its product development and service. “The acquisition is consistent with our long-term strategic intent in terms of our Australian market presence and our overall proposition as an innovative, customer-focused life insurer.

“The acquisition will enhance both our scale and overall capability and will allow us to further strengthen the proposition, which has been a key driver of our recent growth trajectory.”

Macquarie Banking and Financial Services Group Head Greg Ward says the life business has performed well, and the sale is driven by scale.

“The sale… reflects the need for significant scale in the capital-intensive life insurance industry to drive appropriate returns,” he said. “Zurich’s expertise, global reach and customer focus mean it is ideally positioned to continue providing high-quality insurance products and services to Macquarie Life customers.”