May 7, 2018 / 11:17 PM / 6 months ago

UPDATE 1-Australia's ANZ flags additional $751.2 mln-$1.1 bln buyback

(Adds details on OnePath sale, capital management programme)

May 8 (Reuters) - Australia and New Zealand Banking Group (ANZ) flagged on Tuesday the likelihood of an additional buy-back of shares to the tune of A$1 billion-A$1.5 billion ($751.2 million-$1.1 billion), over and above an ongoing programme and as a part of a broader capital management drive.

ANZ also said in a statement it finalised reinsurance arrangements with Zurich Insurance Group - to which ANZ sold its insurance arm in December - and had received about A$1 billion as proceeds.

That would result in an increase of about 25 basis points in its Common Equity Tier 1 capital, ANZ added.

ANZ said the proceeds were a component of the OnePath insurance business sale transactions in the form of reinsurance commission. The A$2.85 billion sale followed a series of non-core divestments across Asia.

Soon after the OnePath sale last year, ANZ had said it would start buying back up to A$1.5 billion of it shares on-market, to begin returning surplus capital.

Back then, it had also said it would consider further capital management initiatives as it received proceeds of its divestments.

$1 = 1.3312 Australian dollars Reporting by Rushil Dutta in Bengaluru Editing by Chris Reese and Stephen Coates

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