(Bloomberg) – Zurich Insurance Group AG, Switzerland's largest insurer, agreed to acquire Australia & New Zealand Banking Group Ltd.'s life-insurance businesses for A$2.85 billion ($2.2 billion).

The deal for OnePath Life will be earnings-accretive from the beginning and increase the firm's return on equity, Zurich Insurance said in a statement. The acquisition is expected to close by the end of next year and will make the firm the largest retail life insurer in Australia with a market share of about 19%.

Zurich Insurance has been restructuring under Italian Chief Executive Officer Mario Greco who has been selling assets, cutting jobs and lowering the insurer's risk profile after losses in its North American auto business prompted the company to abandon a high-profile takeover bid for RSA Insurance Group Plc. The Zurich-based firm bought Australian travel insurer Cover-More Group Ltd. earlier this year.

Focus on capital-light protection

"ANZ's portfolio of non-traditional and profitable retail products fits well with Zurich's strategy to focus on capital-light protection and unit-linked business," Greco said in the statement. "Furthermore, it strengthens the group's position in Asia Pacific, while building on our strong bank distribution capabilities."