AIA completes deal for CBA’s NZ life insurance business

July 3 2018 by InsuranceAsia News Staff

AIA has completed its acquisition of the life insurance business of Commonwealth Bank of Australia (CBA) in New Zealand.

The acquisition was first announced on September 21, 2017, when AIA agreed to buy The Colonial Mutual Life Assurance Society and Sovereign Assurance Company from CBA for about US$3 billion.

After taking into account the proceeds from the reinsurance arrangement, the net cash outlay by AIA is expected to be less than US$500 million, the insurer said in a statement.

The deal makes AIA the biggest life insurer in Australia and New Zealand.

With the deal completed, AIA and CBA will enter into  20-year strategic bancassurance partnerships in Australia and New Zealand giving AIA access to 13 million customers of CBA, which is the largest retail bank in Australia and second-largest in New Zealand.