Zurich sells advisory group

ZurichAustralia has announced it is selling its advisory group, Financial Lifestyle Solutions (FLS), to Millennium3 Financial Services.

Under the agreement, Millennium3 will on-sell FLS’ general insurance business to Insurance Advisernet Australia (IAA), which is part of the Austbrokers network.

Millennium3’s joint managing director Darryl Foster said: “Millenium3 has a close working relationship with Austbrokers and this will be a good strategic fit for both parties.”

ING Australia owns Millenium3, and its chief executive officer Harry Stout said FLS was a good fit for Millenium3 and would increase ING’s adviser distribution footprint.

“With funds under management of more than $1.1 billion, as well as major life and general insurance distribution businesses, FLS is a high quality dealer group that will enhance Millenium3’s presence in the financial services marketplace,” he said.

Zurich’s chief executive David Smith said the sale of FLS completes the process of divesting ownership of non-core assets and was another step in transforming Zurich’s basic operating processes in the pursuit of profitable growth.

“Excellent distribution is fundamental to Zurich’s business, but it does not have to be owned to be effective,” he said.

“Zurich has a very clear model in Australia as a risk manufacturer on both life and general insurance, providing quality services to intermediaries.”

According to Smith, the transaction includes a strategic marketing agreement with Millenium2 in which Zurich would continue to service FLS intermediaries and expand its products and services via Millenium3 adviser groups.