Challenger Financial Services Group has sold its financial planning division to Axa in a multi-million dollar deal.
The sale includes Genesys Wealth Advisers and Synergy Capital Management.
The listed financial services group announced the sale of its advisory division for $150 million. In separate transaction, Axa will transfer to Challenger its $1.3 billion Australian annuity portfolio.
The annuity transfer involves the transfer of assets and liabilities to Challenger for net consideration of $50 million. The transfer is expected to be completed early next year.
“With some $5.1 billion in retirement income policies, the business will be highly efficient and competitive in a market where there is continuing demand for quality guaranteed retirement income streams,” Challenger chief executive Mike Tilley said.
“We are also pleased with the value to be realised for the financial planning business, which reflects its restructuring and improved financial performance under Greg Kirk.”
Following the completion of the sale of the financial planning business, a number of options would be considered for deploying the $150 million, including possible capital management initiatives, he said.
Genesys has 374 advisers with around $12 billion in funds under advice, according to the latest IFA Dealer Group Survey.
