Suncorp Group Limited has signed a share sale and purchase agreement with Resolution Life NOHC, Resolution Life Group’s holding company in Australia and New Zealand (Resolution Life) to sell its New Zealand life insurance business, Asteron Life Limited for NZ$410 million.
According to the announcement, the sale of Asteron Life for NZ$410 million includes an upfront payment of NZ$250 million at completion with the remainder due 18 months after completion, during which time interest will be earned on the outstanding balance.
Moreover, the transaction is subject to New Zealand regulatory approvals and notifications including the Reserve Bank of
New Zealand, the Overseas Investment Office and Commerce Commission.
The transaction is expected to be completed within nine months.
The acquisition is expected to provide Resolution Life with substantial scale and capability across the New Zealand market, ultimately increasing its market presence to the benefit of customers.
From what we understand, Suncorp’s New Zealand general insurance business remains unchanged and part of the Suncorp Group.
Suncorp also anticipates that Asteron Life will continue operating under the Asteron brand with the same management team, while supporting advisers and their customers with the same local New Zealand team.
Suncorp Group CEO Steve Johnston, commented: “In addition to supporting existing customers, Resolution Life will
continue to grow new business in New Zealand through the Asteron Life brand, providing customers with greater access to contemporary products.
“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.
“We have simplified our portfolio in recent years under a strategy designed to align everyone at Suncorp around improving the way we deliver value for our Australian and New Zealand customers. We remain committed to the New Zealand general insurance market as part of our refocused group.”
Additionally, Suncorp New Zealand CEO Jimmy Higgins said, he believed the transaction was in the best interests of
Asteron Life’s policyholders and allowed the New Zealand team to focus exclusively on general insurance, including continuing to create competitive and compelling insurance products and services.
Tim Tez, Chief Executive Officer Resolution Life Australasia, said: “This acquisition further demonstrates our commitment to the Australasian market and our success in growing our business in the region. It follows Resolution Life’s entry into the Australian and New Zealand markets in 2020, and our recent acquisition of AIA Australia’s Superannuation and Investments business.
“Our growth is predominantly through the acquisition of in-force portfolios of life insurance policies as well as remaining open to growing new business in select strategic markets.
“Resolution Life will support the Asteron Life business with its momentum and success in the New Zealand life insurance market. As a trusted life insurer, Asteron Life will continue to operate as a standalone New Zealand licenced life insurance company, under its existing brand in New Zealand and support advisers and their customers using the same dedicated team and management.”
