The Commonwealth Bank of Australia has completed the sale of its New Zealand life insurance business Sovereign.
CBA agreed in September last year to sell both Sovereign and the Australia-based CommInsure businesses to AIA for $3.8 billion.
“The completion of the sale of Sovereign represents a significant milestone for the Transaction, and a key step in CBA’s strategy to create a simpler, better bank focussed on its core banking franchise in Australia and New Zealand,” said CBA chief executive Matt Comyn.
“Our partnership with AIA will allow our customers in New Zealand to have continued access to high quality life and health insurance products through ASB Bank.”
The remainder of the transaction is expected to be completed “later in the calendar year 2018”, but remains subject to “certain conditions and regulatory approvals”.
AIA group chief executive and president Ng Keng Hooi said the transaction will strengthen AIA’s overall business.
“The acquisition of Sovereign and the 20-year bancassurance partnership with ASB Bank will position AIA as the clear leader in the New Zealand life insurance market,” Mr Ng said.
“We look forward to welcoming the Sovereign team into AIA Group and providing innovative life insurance propositions that meet the growing protection needs of customers throughout the nation.”
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