Suncorp confirms sale of life insurance unit to Dai-ichi Life

August 10 2018 by InsuranceAsia News Staff

Suncorp, the second biggest general insurer in Australia, is selling its life insurance division to an arm of Japan’s Dai-ichi Life. The transaction is expected to be valued at A$725 million (US$538.82 million).

At the same time, the Australian insurer revealed that its annual profit had fallen by 1.5%. Suncorp’s announcement effectively puts to rest speculation over the sale that has been ongoing since early last year.

There is a one-off, non-cash loss of about A$880 million that is expected to figure in the financial reports of Suncorp with the sale. Analysts had estimated the unit’s worth at about A$1.5 billion.

Suncorp’s decision comes after other companies like Commonwealth Bank of Australia and National Australia Bank have also given up their life insurance businesses in a bid to trim down exposure to shrinking margins and overseas competition.