The decision was made as part of a plan to simplify Suncorp’s portfolio, and will see LGIAsuper’s funds under administration swell to some $28 billion ahead of its proposed merger with Energy Super.
“The values and purpose of LGIAsuper, which is also headquartered in Queensland, align closely with those of Suncorp. This transaction will also enable the combined businesses to take advantage of size and scale benefits,” said Suncorp chief executive for banking and wealth Clive van Horen.
Total consideration is estimated at $45 million, including a fixed amount of $26.6 million as well as regulatory capital. Following completion of the sale, Suncorp will enter into an agreement with LGIAsuper to distribute Suncorp products to Suncorp customers for 18 months. LGIAsuper has also agreed to offer roles to the approximately 130 employees who work directly or indirectly within the wealth business.
Wow. Id like to see the business case on LGIA spending the $$$ from the member’s reserve. How many years for that pay back?
Well Suncorp has finally sold the last part of the Asteron/Tyndall business, when the purchased it it was a profitable “little” book of Risk & Wealth clients with a loyal Adviser base, they promised they were going to improve the systems and service and delivered NOTHING, killed Guardian with the recruitment of sub standard advisers, treated the original Guardian Advisers as sub human, demanding they “FLOG” Suncorp crap products and then wondered why those Advisers left and took THEIR CLIENTs with them, like ANZ with OnePath, NAB with MLC, Com Bank with Colonial and Westpac with BT, The “BANKS” caused the mess we are in and now that they can’t make the profits they expected to make they sell, but Suncorp continues to punish what Wealth clients they had by selling the business to an Union owned Industry Fund, that will make them happy considering many of them left Union owned Industry funds to have their monies invested with a retail fund. What a Joke.
Yep, that’s pretty much what happened. “Wealth Executives” in banking never made a profit for the parent company. They all operated at a loss taking out huge salaries in the process. Go figure.
The stupidity was that Asteron was a licence to print money – great products and people throughout. Guardian ‘was’ good too, before certain people arrived – staff and advisers both. All history now but back in the day it was a powerhouse – Asteron AND Guardian. I was much better off out of Guardian as it turned out – paying half the fees now for the same if not more support – better support actually as a riskie which Guardian never did.
Love to know the breakeven on this? Will existing members ever enjoy cost savings if all the employees are coming across-how will synergies EVER be realised??