TAL Dai-ichi has confirmed that it is purchasing the Australian arm of The Suncorp Group's life insurance business.
The agreement for TAL to acquire Suncorp’s Australian life insurance business is now binding, subject to regulatory approvals in Australia and Japan and other conditions.
Suncorp will sell the business to TAL under the deed for approximately $725 million, which includes the purchase consideration and adjusted net worth.
The share sale includes a 20-year distribution agreement with TAL to offer life insurance through Suncorp’s Australian distribution channels and Suncorp will continue to earn income on the distribution of life insurance.
Suncorp anticipates returning approximately $600 million to shareholders following the completion of the transaction and anticipates that it will be completed by the end of the year.
TAL Group CEO and managing director Brett Clark said he was delighted to have finalised this deal and would position TAL strongly for continued growth.
“This acquisition will enhance TAL’s scale and capability across the retail, group and direct segments, and opens up important new distribution channels.
“It provides us with a strong base for continued growth and reflects our ongoing commitment to offering Australians a range of life insurance options to meet their diverse needs,” he said.
All of Suncorp’s life insurance offerings, including Term Life, Income Protection and Funeral Insurance will be added to TAL’s current offerings.
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