AIA set to buy Commonwealth Bank’s life assetsSeptember 18 2017 by InsuranceAsia News Staff
AIA was thought to be the most likely group to buy the life insurance assets of Commonwealth Bank of Australia (CBA), which could be worth more than US$4 billion.
While there has been no official statement about the winning bidder, sources close to CBA said they believed AIA had won the contest after the insurance giant and Zurich made final bids Thursday night to acquire CommInsure and the New Zealand Sovereign business.
CBA has been working on the life insurance sale with adviser JPMorgan.
CBA joins rivals National Australia Bank and ANZ Bank in selling part of its insurance and wealth business.
Analysts said life insurance was a capital-intensive business in which banks such as CBA had no clear competitive advantage.
Their advantage was the ability to distribute such products to retail customers.
- June 1
The change for life insurance JVs is proposed in the latest draft regulatory amendments under consideration.
- May 24
Dwindling sales of savings-type products and weaker investment returns are reducing income.
- May 14
Linked policies recorded the highest growth, up 82% from the same period last year.
- May 2
Shareholders will carry out a detailed evaluation of shortlisted bidders over the next couple of weeks.