AIA Group has agreed to sell its Australian superannuation and investments business to London-headquartered insurer Resolution Life.
The deal will see more than A$8 billion ($5.8 billion) in funds under management transferred from AIA Group to Resolution Life, according to a statement, with policies that date back to the former’s 2017 acquisition of Common Bank of Australia’s life insurance business.
«Following a review of the overall portfolio in Australia, AIA concluded that the [superannuation and investments] business is non-core to AIA’s strategy to be the leading life, health and wellness provider in Australia and does not meet AIA’s financial criteria,» AIA said in the statement.
While no transaction value was disclosed, AIA was reportedly considering some legacy life insurance assets to Resolution for a few hundred million dollars, according to «Bloomberg» in January.
Resolution Life
Since 2003, Resolution Life has deployed more than $17 billion of equity in the acquisition, reinsurance, consolidation and management of life insurance companies, according to its website.
Today, its portfolio boasts 180-plus life insurers, over 13 million policyholders and more than $365 billion in assets with operations in the U.K. Bermuda, the U.S., Australia and New Zealand.
The AIA deal is expected to add 162,000 new customers for Resolution Life which has 1.1 existing customers in the Australian market, where it has spent over A$1 billion in investments including for its digital platform.
