The aggregate proceeds for CBA from the transaction are expected to be $2,375 million, a reduction of $150 million from the original sale price, CBA said in a statement.
It said the arrangements are expected to be implemented in a staged manner throughout financial year 2020, with CBA to receive approximately $750 million of proceeds and distributions by the end of first half of FY20 and the remaining $1,625 million by the end of FY20.
The revised transaction path comprises a joint co-operation agreement, reinsurance arrangements, partnership milestone payments and a statutory asset transfer.
Further, CBA said the revised transaction path is subject to a number of Australian regulatory approvals, the entry into reinsurance arrangements and life insurance entity board approvals.
CBA and its New Zealand subsidiary, ASB, have also agreed to grant AIA an option to extend the respective Australian and New Zealand distribution agreements from 20 years to 25 years.
“Today’s announcement provides CommInsure Life’s policyholders and staff with more clarity about the future of the business and progresses the simplification of CBA’s portfolio of businesses,” said CBA chief executive Matt Comyn.
“We are excited by the opportunity to bring together the strengths of AIA and CommInsure Life and are working hard with our partner to develop a new generation of products for CBA’s customers, which will deliver excellent customer outcomes.”
Umm “Top Heavy”, I’d suggest to you that you need to go back to school regarding your comment on “Vitality rubbish”…the take up across continents of this product has been enormous and has lead to many improving their health because of it. I’ve dropped from 96kg to 84 kg’s in 4 months since joining and have the full benefit of the rewards on offer as well as my insurance now “being cheaper” because I’ve made the effort, both in understanding how it works and embracing the reason for it being there in the first place.
Both Comminsure and AIA are just tweed jacketed snake oil sales teams flogging insurances for a huge premium that most will never claim.
There comes a point when these greedy insurance floggers need to be held accountable for their nonsense.
Stop your BS and cut your premiums. AIA you need to delete all this vitality rubbish and focus on reducing cost.
Start by slashing senior management salaries and pointless programs then pass on the savings.
What a glorious stuff-up. CBA could not run a chook raffle after the footy in a pub with ALL the towns-folk at the bar ! And BTW, don’t forget, both major political parties approved those famous short term thinkers, the big four banks, purchasing life insurance companies, where long term thinking SHOULD be de rigueur. What a culture clash and failure that has been.