Commonwealth Bank of Australia Announces Sale of its Life Insurance Business to AIA for $3.8 Billion
Commonwealth Bank of Australia (CBA) announced the sale of its Australian (“CommInsure Life”) and New Zealand (“Sovereign”) life insurance businesses to AIA for $3.8 billion. The $3.8 billion sale represents a P/E of 16.9x (FY2017).
” Commonwealth Bank sells insurance business to AIA for $3.8 billion “
The sale includes a 20-year partnership with AIA for the provision of life insurance products to customers in Australia and New Zealand. AIA is the largest independent publicly listed pan-Asian life insurance group. The transaction is expected to be completed in 2018.
Commonwealth Bank Chief Executive Officer Ian Narev:
“Providing our customers with access to high quality products and services for all their financial needs is core to our vision of securing and enhancing financial wellbeing. We have said for some time that while distributing life insurance is a fundamental part of that strategy, we were open to different models for doing so. The combination of AIA’s leading insurance capability and scale and Commonwealth Bank’s broad distribution, and our complementary values and commitment to customer focus and innovation, mean that a partnership between us will create an even better experience for our customers, in a more efficient way for our shareholders.”
AIA Group Chief Executive and President, Ng Keng Hooi:
“The acquisition of CBA’s life insurance businesses and the new 20-year bancassurance partnership with CBA will strengthen AIA’s protection market leadership and expand our distribution capabilities in these markets. We look forward to welcoming our new customers and colleagues, and working with CBA to deliver innovative insurance products and services that meet the growing financial protection needs of customers across Australia and New Zealand.”
Source: Official Press Release
About Commonwealth Bank
The Commonwealth Bank is Australia’s leading provider of integrated financial services including retail banking, premium banking, business banking, institutional banking, funds management, superannuation, insurance, investment and sharebroking products and services. The Group is one of the largest listed companies on the Australian Securities Exchange and is included in the Morgan Stanley Capital Global Index. It was was founded under the Commonwealth Bank Act in 1911 and commenced operations in 1912, empowered to conduct both savings and general banking business. Today, the bank has grown to a business with more than 800,000 shareholders and 1,100 branches nationally.
- Origin : Sydney, Australia
- Assets : $933.1 billion
- Revenue : $24.6 billion
- Employees : 52,000
Official Website: www.commbank.com.au
News & Media: Press Release
Updated on 8th August 2016