Zurich exiting Lonsec
Zurich is expected to announce it is exiting its ownership in the research and ratings house, Lonsec, within the next few weeks.
While the company has formally declined to discuss industry speculation, Money Management has had it confirmed that Zurich has been entertaining bids from interested parties for at least the past few months.
Lonsec will represent a rich prize for the winning bidder, with Money Management’s Rate the Raters survey having seen it rise to market dominance in both the funds management and financial planning dealer groups space.
According to Money Management's sources, the sales process would see Zurich exit both the research and funds management elements of the Lonsec business, allowing the Swiss-based insurer to further concentrate on what it regards as its core businesses.
The sales process around Lonsec follows on from recent structural and management changes announced by Zurich.
The company announced in March that Zurich would be focusing on two distinct operating businesses: general insurance, along with life insurance and investments – with two chief executives replacing the incumbent David Smith.
Smith departed the Zurich business at the end of March and the company has been systematically moving to its new structure.
Shane Doyle (pictured) was appointed chief executive of the general insurance business, while the former general manager, Life Australia, Colin Morgan, was appointed chief executive of Life Australia.
Money Management understands that a number of bidders have emerged for the Lonsec business with names such as Mercer, van Eyk and Morningstar having been canvassed.
It is also understood that at least one former senior ratings house executive has been approached to provide consultancy support for one of the leading bids.
It is not known whether senior executives of Lonsec have sought to mount a management buyout.
Lonsec is currently structured to encompass a number of businesses including research and ratings, stockbroking, investment consulting and portfolio services.
Lonsec partners with Money Management to deliver the annual Money Management Fund Manager of the Year.
AUTHOR
Mike Taylor
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
