The Commonwealth Bank today has sold its life insurance business, CommInsure to AIA Group.
The company announced to the Australian Securities Exchange that the transaction had been valued at $3.8 billion and included a 20-year partnership with AIA for the provision of life insurance products to Commonwealth Bank customers in Australia and New Zealand.
The announcement of the sale came as the Commonwealth Bank said it was also reviewing the future of Colonial First State Global Asset Management (CFSGAM), including the possibility of floating it off.
Commenting on the insurance transaction, AIA group chief executive and president, Ng Keng Hooi, said: “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”.
Under the terms of the partnership, Commonwealth Bank will continue to earn income on the distribution of life and health insurance products.