Receipt of 1st Tranche of AU Life Insurance Sale Proceeds

Australia and New Zealand Banking Group Limited ABN 11 005 357 522
News Release
For release: 8 May, 2018
ANZ CONFIRMS RECEIPT OF PROCEEDS
- First Tranche of Australian Life Insurance Sale -


ANZ today announced it has finalised its reinsurance arrangements with Zurich and has
received around $1 billion of reinsurance proceeds. This results in an increase of ~25bps in
ANZ’s APRA Common Equity Tier 1 capital
1
.

The sale of ANZ’s Australian Life Insurance business was announced on 12 December 2017
2
.
The sale is comprised of two transactions totalling $2.85 billion, including around $1 billion
of upfront reinsurance commission, and the sale of 100 percent of One Path Life.

Having received the reinsurance proceeds, ANZ will continue to work through its capital
management options, which may include an additional on-market buyback of $1 billion to
$1.5 billion
3
. ANZ will confirm its plans once analysis of the various alternatives and
requisite approvals are completed.

ANZ announced at its recent half-year results an intention to once again neutralise the
impact of the Dividend Reinvestment Plan (DRP) through the on-market purchase of shares.
The purchase of shares associated with the DRP is expected to commence on 18

May and
continue until 31 May. ANZ will appoint a third party to purchase shares on-market to
satisfy ANZ’s obligations under the DRP
4
. ANZ does not intend to purchase shares in relation
to the current $1.5 billion buyback during this period.


For media enquiries contact: For investor enquiries contact:
Liz Rudall, +61 403 130 207 Jill Campbell, +61 412 047 448
Nick Higginbottom, +61 403 936 262 Cameron Davis, +61 421 613 819


1
ANZ reported an APRA CET1 ratio of 11.0% at 31 March 2018 in the 1H18 Results materials released on 1 May.
2
ANZ announced on 12 December 2017 the sale of its Australian Life Insurance Business to Zurich Financial
Services Australia.
3
ANZ announced an on-market buyback of up to $1.5 billion of shares on 18 December 2017. Progress on the
buyback was outlined at the 1H18 result released on 1 May.
4
ANZ will announce the size of the DRP neutralisation and the third party broker in advance of the on-market
purchase of the DRP shares.