The bank’s investment management business is not part of the sale.
Cigna, a global health service giant, has 95 million customers around the world and employs more than 40,000 people.
Second in one month
The transaction follows ANZ parting with another non-core business in May, when it sold a majority stake in a Cambodian joint venture to Japan’s J Trust.
Further, in April, ANZ Australia was fined A$3m (£1.6m, $2.3m, €1.9m) for charging fees but providing no service after the country’s watchdog found it had failed to produce documented annual reviews to more than 10,000 financial advice customers.
The bank sold OnePath Life Australia to Zurich in December 2017 for A$2.85bn.
ANZ New Zealand chief executive David Hisco said the sale included a 20-year strategic alliance for Cigna to provide insurance solutions for ANZ bank customers and is consistent with ANZ’s strategy to simplify its business.
“Under this agreement, ANZ will continue to provide life insurance to our customers but these insurance policies will now be manufactured and managed by a world-class insurance provider in Cigna.
“This is consistent with how we provide motor vehicle, home, commercial and travel insurance using a range of specialist insurance partners,” Hisco said.
Cigna New Zealand chief executive Gail Costa said the acquisition and strategic alliance diversified Cigna’s distribution capabilities: “This acquisition will enable us to provide broader solutions and be more agile and responsive to a larger customer base.”
The sale remains subject to regulatory approval and is expected to complete in financial year 2019.