CBA completes sale of NZ life insurance business

3 July 2018
| By Nicholas Grove |
image
image
expand image

Commonwealth Bank (CBA) has completed the sale of its life insurance business in New Zealand to AIA Group Limited via the sale of Sovereign Assurance Company Limited.

The sale of Sovereign is part of the agreed sale of 100 per cent of CBA’s life insurance businesses in Australia (CommInsure Life) and New Zealand to AIA for $3.8 billion, announced back in September 2017.

At the time, AIA also announced that it had entered a 20-year strategic distribution agreement with ASB Bank, the second largest retail bank in New Zealand and a CBA subsidiary.

CBA chief executive officer Matt Comyn said the completion of the sale of Sovereign represented a key step in CBA’s strategy to create a simpler, better bank focussed on its core banking franchise in Australia and New Zealand.

“Our partnership with AIA will allow our customers in New Zealand to have continued access to high quality life and health insurance products through ASB Bank,” he said.

AIA Group regional chief executive, Bill Lisle, said the acquisition of Sovereign would significantly transform and expand AIA’s presence in New Zealand.

“Our new long-term partnership with ASB is a significant opportunity for AIA in New Zealand. We are confident that ASB’s distribution network, combined with AIA’s regional bancassurance capabilities and life insurance product expertise, will deliver strong insurance propositions for our customers,” he said.

The remainder of the transaction, the sale of CommInsure Life, remains subject to certain conditions and regulatory approvals and is expected to be completed later in calendar year 2018, according to CBA.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 3 months ago
Kevin Gorman

Super director remuneration ...

1 year 3 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 3 months ago

Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predict...

12 hours ago

Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one ...

13 hours ago

Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns a...

13 hours ago

TOP PERFORMING FUNDS