Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Merger or Acquisition (December 2017)
9 slides from Anz's merger presentation, Dec 12, 2017
Slide 1: Update on Wealth Australia Divestments
UPDATE ON WEALTH AUSTRALIA DIVESTMENTS AUSTRALIA AND NEW Z EAL AND BANKING GROUP LIMITED 12 DECEMBER 2017
Slide 2: Overview
OVERVIEW • ANZ today announced the sale of its Wealth Australia life insurance business to Zurich Financial Services Australia (Zurich). • The sale of Wealth Australia’s life insurance business comprises a sale of 100% of One Path Life Australia Holdings Pty Limited and a reinsurance arrangement (“O
Slide 3: Announced Sale of Life Insurance Business: Transaction Summary
ANNOUNCED SALE OF LIFE INSURANCE BUSINESS TRANSACTION SUMMARY Transaction Sale of Wealth Australia Life Insurance business to Zurich Financial Services Australia Transaction metrics • Total proceeds of $2.85 billion across two transactions: - $1 billion of upfront reinsurance commission from Zurich
Slide 4: Strategic Alliance & Customer Outcome
ANNOUNCED SALE OF LIFE INSURANCE BUSINESS STRATEGIC ALLIANCE & CUSTOMER OUTCOME Strategic alliance • As part of the sale agreement, ANZ will enter into a 20 year strategic alliance to offer life insurance solutions through ANZ’s distribution channels. • ANZ’s Australia Division distribution income f
Slide 5: Reinsurance Arrangement
ANNOUNCED SALE OF LIFE INSURANCE BUSINESS REINSURANCE ARRANGEMENT Overview • To gain early exposure to a portion of OPL earnings, Zurich will enter into a quota share reinsurance agreement via a $1 billion upfront commission payment • In effect, Zurich acquires the rights to a portion of the profits
Slide 6: Wealth Australia Divestments
W E A LT H A U S T R A L I A D I V E S T M E N T S - 2 0 1 7 Transactions OPL (Announced today) OnePath P&I (Announced 17 October 2017) Products Insurance products include: P&I Platforms & Products include: • Advised Life (OneCare and closed products) • Advised (Retail) including OneAnswer Mastertru
Slide 7: Wealth Australia Divestments: Financial Considerations
W E A LT H A U S T R A L I A D I V E S T M E N T S - 2 0 1 7 FINANCIAL CONSIDERATIONS FY17 Cash Profit FY17 FY17 FY17 $m (Wealth Aus. Total) (Divested businesses1) (Retained businesses) Operating income 1,086 694 392 Operating expenses (743) (482) (261) Profit before income tax 343 212 131 Cash prof
Slide 8: Impact of All Announced Divestments: ANZ 2018 Financial Impact
I M PA C T O F A L L A N N O U N C E D D I V E S T M E N T S ANZ 2018 FINANCIAL IMPACT INDICATIVE CHANGE IN CONTRIBUTION FROM DIVESTMENTS (FY18 vs FY17)1 FY18 OnePath P&I OnePath Total • Completion est. FY19 $m Asia Retail SRCB MCC UDC OPL6 • Loss on sale ~$120m 2 P&I (lower earnings) • CET1 impact
Slide 9: Further Information
Further Information DISCLAIMER & IMPORTANT NOTICE: The material in this presentation is general background information about the Bank’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upo
Australia and New Zealand Banking Group — Merger or Acquisition (December 2017) on 6ix