Suncorp has announced the successful completion of the sale of its Australian life business to TAL Dai-ichi Life Australia.
As Investor Daily has previously reported the total consideration of the sale is expected to be $725 million.
The sale is expected to result in an after-tax non-cash loss on sale of approximately $880 million.
Suncorp has announced that after costs it will be able to return approximately $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.
The sale will include the Suncorp Life & Superannuation Ltd, the Australian life risk division and participating businesses via sale of shares.
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 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.
The successful sale is the latest in a series of life insurance business sales with ANZ selling its life business to Zurich last year and AMP selling its life insurance division to Resolution Life last year.
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