(Adds details on deal, context)
May 30 (Reuters) - ANZ Bank New Zealand agreed to sell its New Zealand life insurance business to U.S-listed Cigna Corp for NZ$700 million ($482.4 million), as its parent boosts its capital base by hiving off non-core businesses.
ANZ Bank New Zealand said the deal to sell OnePath Life NZ would add about 5 basis points to the level 1 CET ratio of Australia and New Zealand Banking Group.
The deal would generate a gain on sale of around NZ$50 million, the company said in a statement on Wednesday.
The transaction marks ANZ's second disposal this month, after it sold a majority stake in a Cambodian joint venture to Japan's J Trust.
This follows a trend among major Australian banks to offload non-core businesses to trim their capital requirements and simplify business structure. National Australia Bank said earlier this month it was looking to exit part of its wealth management arm by 2019.
ANZ New Zealand said the deal included a 20-year strategic alliance for Cigna to provide insurance to ANZ Bank customers. It added that current policy holders would continue with existing coverage.
$1 = 1.4512 New Zealand dollars Reporting by Ambar Warrick in Bengaluru; Editing by Stephen Coates