Wednesday, September 20, 2017

Suncorp eyes sale of US$1.5bn life insurance unit

Suncorp Group, announced that it is ready to sell its life insurance division, which is valued at A$2 billion (US$1.5 billion).

Chief executive Michael Cameron said that among the options being considered by Australia’s second-largest general insurer by market share are reinsurance deals, partnerships and the sale of all or part of the business.

Regardless of the sale, Cameron said Suncorp would remain a distributor of life insurance under any scenario as part of its strategy of being a one-stop financial shop for customers.

The announcement came after the company reported a 5% rise in half-yearly cash profit.

The growth was lower than the 8% forecast, according to analysts.

Australia’s life insurers have faced rising claims rates and more policy cancellations since March last year.

National Australia Bank sold 80% of its life insurance division to Japan’s Nippon Life for A$2.4 billion.

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