The Commonwealth Bank of Australia is the latest of the big four Aussie banks to consider selling-off part of its business.
The Sydney headquartered bank is looking into the sale of its life insurance business which could be valued at $5 billion.
US-investment bank J.P. Morgan has been working with Commonwealth Bank of Australia (CBA) the country's largest lender, on a review of the business.
Trouble at Home
The CommInsure business, according to a report from «AFR» (behind paywall) which houses one of Australia's largest life insurance books, has been something of a millstone around the neck of CBA in recent years.
A major investigation by Fairfax Media sparking internal reviews of CommInsure, and a probe by the corporate regulator. Both cleared the business of major issues.
Getting Out
Like its fellow Australian banks CBA under CEO Ian Narev is looking at disposing of non core banking assets to focus on domestic business. ANZ is down to three bidders for its own wealth unit which includes insurance and is valued in the region of $4.5 billion.
National Australia Bank sold an 80 percent stake in MLC Life to Nippon Life Insurance Company for $2.4 billion, while Macquarie Group sold its life insurance business to Zurich Australia in March the following year.
