Allianz Partners will buy health group Nib Holdings’ travel insurance portfolio in Australia and New Zealand, in a deal valued at up to $50 million.

The Allianz subsidiary has also secured a 20-year agreement to offer Nib-branded travel cover products in the two markets.

“This acquisition is a landmark moment for Allianz Partners Australia,” CEO Chris McHugh said.

Allianz Partners says the purchase will increase its presence across digital and in-person sales channels.

“Critically, it marks [our] expansion into the offline travel distribution channel in Australia – the bricks-and-mortar agent channel that remains a vital point of purchase for Australian travellers,” Allianz Partners said.

“The ability to support customers across both digital and intermediary channels is becoming increasingly important – particularly for higher-value and more complex travel.”

The sale includes Nib’s Travel Insurance Direct brand. Nib says $30 million will be paid on completion of the deal – expected by end of the year pending regulatory approval – and the remaining $20 million is subject to conditions being met over the first 12 months.

Nib says the sale represents the divestment of its remaining travel business. The health group announced in February it was selling its World Nomads International travel insurance operation to International Medical Group.

Under CEO Ed Close, the health group has decided to focus on its core business.

“We’re pleased to partner with [Allianz Partners] … to continue to provide customers with Nib- branded travel insurance products under a distribution agreement,” Mr Close said.

“Travel insurance remains highly valued to our customers, and this long-term agreement ensures continued access, while enabling us to stay focused on health and related services.”