Suncorp Group sells NZ life insurance business

Suncorp Group (ASX:SUN) has sold its New Zealand life insurance arm, Asteron Life Limited, to Resolution Life NOHC, a holding company of Resolution Life Group in Australia and New Zealand – in a deal valued at A$375.4 million.

The transaction, subject to regulatory approvals from various New Zealand authorities including the Reserve Bank of New Zealand, the Overseas Investment Office, and the Commerce Commission, is expected to be settled within nine months. It involves an initial payment of A$228.9 million upon completion, with the remainder to be settled 18 months later with interest.

“The transaction continues the reshaping of the Suncorp Group, and positions both the general and life insurance businesses for ongoing growth and success – benefiting employees, customers, and other stakeholders. We believe it is a win-win for our stakeholders,” Suncorp Group CEO Steve Johnston said.

Resolution Life, the purchaser, specializes in acquiring and managing life insurance policy portfolios globally. With its operations spanning across Bermuda, the U.K., the U.S., Australia, and now New Zealand, Resolution Life has a track record of serving millions of policyholders and managing substantial assets. The sale aligns with Resolution Life’s strategy to restructure the global life insurance industry.

Despite the change in ownership, there will be no operational alterations to Asteron Life. The business will maintain its brand, management team, and local support structure for advisers and customers. Moreover, it will continue to accept new business post-acquisition.

SUN has been trading at $16.35.