CBA has released its full-year results and has announced it is in conversations with third parties to look at the divestment of its life insurance businesses.
In the release of its full-year results this morning, CBA said it is looking at divesting its life insurance businesses.
“We are in discussions with third parties in relation to their potential interest in our life insurance businesses in Australia and New Zealand,” CBA said
“The outcome of those discussions is uncertain. While the discussions may lead to the divestment of those businesses, we will also consider a full range of alternatives, including retaining the businesses, reinsurance arrangements or other strategic options.
“CommInsure and Sovereign are strong businesses with scale, expertise, competitive products and access to attractive distribution channels.”
Meanwhile, CBA recorded a full-year cash net profit after tax of $9.88 billion, up 4.6 per cent on the previous year.
The wealth management business saw a cash net profit after tax of $553 million, down from $612 million the previous year, while retail banking services recorded a cash net profit of $4,964 million, up from $4,540 million the previous year.
The results come days after AUSTRAC commenced civil proceedings against the bank for alleged money laundering breaches.
CBA will release its annual report on Monday, which will contain the remuneration report for CBA executives.
The potential divestment of CommInsure follows similar moves by competitors, with MLC selling its life business to Japanese insurer Nippon Life and Suncorp slating potential divestment of Asteron Life. ANZ's wealth business is also on the market.
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