Suncorp sells NZ life insurance arm to Resolution Life
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The news: Suncorp has agreed to sell its New Zealand life insurance business Asteron Life to Resolution Life for NZD410 million ($375 million).
The numbers: The sale of Asteron Life includes an upfront payment of NZD250 million, with the remainder due 18 months after the completion of the deal.
Suncorp said the deal is still subject to New Zealand regulatory approvals and notifications including the Reserve Bank of New Zealand, the Overseas Investment Office and the Commerce Commission, and is expected to complete within nine months.
Global life insurance group Resolution Life has approximately NZD30.4 billion in assets under management across Australia and New Zealand, with further operations in the US, UK and Bermuda.
The context: Suncorp said its New Zealand general insurance business remains unchanged and part of the Suncorp Group.
Asteron Life's business operations are not expected to change following the sale, and will continue to operate under the same brand with the same management team.
Suncorp New Zealand CEO Jimmy Higgins noted that the deal was in the best interests of Asteron Life's policyholders and allowed the New Zealand team to focus exclusively on general insurance.
What they said: Suncorp Group CEO Steve Johnston said: "In addition to supporting existing customers, Resolution Life will continue to grow new business in New Zealand through the Asteron Life brand, providing customers with greater access to contemporary products.
"The transaction continues the reshaping of the Suncorp Group, and positions both the general and life insurance businesses for ongoing growth and success [...] we believe it is a win-win for our stakeholders.
"We have simplified our portfolio in recent years under a strategy designed to align everyone at Suncorp around improving the way we deliver value for our Australian and New Zealand customers. We remain committed to the New Zealand general insurance market as part of our refocused group."
The source: ASX announcement
