The Commonwealth Bank has sold CommInsure and Sovereign to AIA, and will undertake a "strategic review" of Colonial First State Global Asset Management.
CBA has announced that it has divested its life insurance businesses, CommInsure and Sovereign (New Zealand), to AIA Group for $3.8 billion.
Annabel Spring, group executive for wealth management at CBA, will leave the bank in December as a result of the sale.
Current CFO of international financial services Michael Venter has been appointed chief operating officer of wealth management and will take Ms Spring's place in the group executive committee following her departure.
In addition, CBA has announced a strategic review of Colonial First State Global Asset Management, including a possible IPO.
The sale of CommInsure and Sovereign also includes a 20-year partnership with AIA for the provision of life insurance products to customers in Australia and New Zealand.
The divestment of the businesses will net $3.8 billion for CBA, a multiple of 16.9 times 2017–18 pro forma earnings and 1.1 times the embedded value of CommInsure and Sovereign.
The transaction is expected to release approximately $3 billion of common equity tier 1 (CET1) capital and result in a pro forma uplift to the group's CET1 ratio of approximately 70 basis points.
The sale does not include general insurance, and CBA will retain the CommInsure brand.
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