By Nathan Allen

Switzerland's Zurich Insurance Group AG (ZURN.EB) said Monday that it will buy Australia & New Zealand Banking Group Ltd.'s (ANZ.AU) life-insurance business in Australia for about $2.14 billion.

"The acquisition is expected to contribute to the Group's profitability from day one, generating strong cash flows which will support future dividend growth," Zurich said.

Zurich said it will initially pay 1 billion Australian dollars ($750.6 million) in reinsurance commissions to ANZ when the deal receives regulatory approval, with the remaining balance to be paid on completion.

The acquisition will provide Zurich with roughly a 19% market share in Australian retail-life insurance, the company said.

The deal, which will be funded through cash and senior debt, is expected to cause a modest reduction to Zurich's capital position, the company added.

The announcement comes on the heels of a string of Asia-Pacific acquisitions by Zurich, including the takeovers of Macquarie Group Ltd.'s (MQG.AU) life-insurance business in 2016 and Australian travel-insurance provider Cover-More in April.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

December 11, 2017 12:46 ET (17:46 GMT)

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