The Commonwealth Bank of Australia has sold CommInsure and Sovereign to AIA. The bank also launched a «strategic review» of Colonial First State Global Asset Management.
The Commonwealth Bank of Australia (CBA) has sold 100 percent of its Australian and New Zealand life insurance businesses to AIA Group for $3.8 billion. The sale of CommInsure Life and Sovereign also includes a 20-year bancassurance partnership with AIA for the provision of life insurance products to customers in Australia and New Zealand.
Brand Retained
Under the agreement, CommInsure Life and Sovereign customers will hold on to all current benefits of their existing policies. They will have continued access to life insurance products through CBA and life and health insurance products through New Zealand's ASB Bank, as well as AIA solutions.
CBA will continue to earn income on the distribution of life and health insurance products. The sale and partnership does not encompass general insurance, meaning the CommInsure brand will be retained by CBA.
No Deal for Zurich
The sale increases AIA's position as one of the biggest life insurers in the Asia-Pacific region. Commenting on the transaction, AIA Group Chief Executive and President Ng Keng Hooi said it will «strengthen AIA's protection market leadership and expand our distribution capabilities in these markets.»
AIA recently dropped out of the bidding for the wealth unit of ANZ Banking Group to focus on acquiring the CBA unit. Swiss insurance and financial services giant Zurich, which was said to have made it to the last two in the bidding for the CBA unit, now has to wait to see if it has won the tussle for the ANZ business. It is thought that MetLife and Zurich, who both made it through to the second round are fighting for the unit which is estimated to garner a price of $4 billion to $5 billion.
