Zurich Australia has sold its research division, Lonsec, to a new holding company called Financial Research Holdings.
The holding company has also bought superannuation researcher SuperRatings.
Financial Research is formed by SuperRatings managing director Jeff Bresnahan, private equity investor Mark Carnegie and SuperRatings chief executive Jason Clarke.
Zurich Life & Investments chief executive Colin Morgan announced Lonsec’s sale in a letter to financial advisers yesterday.
“Today [Wednesday] we are delighted to announce the sale of Zurich’s research and stockbroking business Lonsec to Financial Research Holdings, a privately owned and independent entity with a multi-brand strategy of providing leading financial services,” Morgan said.
“The sale reflects our strategic focus, locally and globally, on core business lines. This focus has enabled us to forge a reputation, in both life risk and investments, as a provider of innovative, market-leading solutions.”
Morgan said the sale of Lonsec marks an “exciting milestone in the evolution” for the business and the beginning of a new chapter in Zurich’s partnership with advisers around Australia.
He said Zurich’s focus remains “singular and unchanged” in helping financial advisers deliver quality advice to clients and help grow their businesses.
“This commitment to growth remains unwavering, as does our committment to helping you navigate the ever changing landscape of our industry ‘post FOFA’ [future of financial advice], an issue on which we have represented adviser interests strenuously over the last 12 months,” he said.
“The change in ownership status of Lonsec will not impact on your interactions with Zurich’s people or products.”
Late last month, Zurich refused to make any comment on the possible sale of Lonsec, despite industry rumours.
At the time, it was believed the three unnamed bidders were made up of one small company and two companies with market capitalisations of more than $1 billion.
A Zurich spokesperson would not comment on any claims relating to the potential sale of Lonsec or speculate on any bidders.
“We don’t comment on any speculation,” the spokesperson said.
Market speculation about a Lonsec sale began in April.
