As part of its full-year result released this morning, Suncorp has announced it has completed its strategic review of its Australian life insurance business.
The result of the review is that Suncorp has signed a non-binding heads of agreement with TAL Dai-ichi Life Australia.
The business will be sold for a forecast consideration of $725 million, with a forecast capital return of approximately $600 million.
The sale will include the Suncorp Life & Superannuation Ltd, the Australian Life Risk division and “participating businesses via sale of shares”.
Commenting on the acquisition, TAL chief executive Brett Clark said: “This transaction will significantly expand TAL’s market leading presence in Australia and will provide exciting opportunities for us with additional trusted and recognised brands, and a broader group of financial advisers.”
“This acquisition will enhance TAL’s scale and capability across the retail, group and direct segments, and will open up important new distribution channels.
“It will provide 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,” Mr Clark said.
