Suncorp completes sale of life insurance business

The total consideration of the sale is expected to be $725 million, Suncorp said in a statement to the ASX.

The sale is expected to result in an after-tax non-cash loss on sale of about $880 million.

Suncorp has announced that, after costs, it will be able to return about $600 million of capital to shareholders. 

The means of distributing this capital continues to be through seeking shareholder approval for a pro-rata return of share capital and share consolidation. 

Suncorp will commence a 20-year strategic alliance with TAL to offer life insurance solutions through Suncorp’s distribution channels and Suncorp will earn income on the distribution of life insurance issues by TAL. 

Suncorp chief executive and managing director Michael Cameron said that partnering with TAL gave Suncorp the opportunity to offer a compelling life insurance solution to its customers. 

“The transaction frees-up capital for Suncorp to return to shareholders, and also leverages the strengths of the respective organisations to offer value to Suncorp customers,” Mr Cameron said.

Eliot Hastie

Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms. 

Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.

Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).

You can email him on: [email protected]