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.
Comments
If anyone had any doubts as to the greediness of the cba, just look at the recent IP premium increases , just before this sale went through. Talk about pump and dump. The big boys are the specialists at this sneaky stuff. So now AIA takes on all the risk of the Comminsure book, they of course will need to reprice the whole book now. So AIA will also raise premiums due to market forces. And ASIC are worried about 2 or 3 churners, look up the tree you gutless wonders, thats where the real cherry pickers are, on the top branches!
TJ, I have been appreciative of your posts for a number of years and yet again you are spot on with this one. The FSC, product manufacturers, and their protection of vertical integration are nothing but a handicap on our profession and our clients whose best interest we always have at heart.
Thank you Alex, I do care deeply about our industry and love my job and try and write how I see it on the ground. The FSC and so forth lost my trust a long time ago, the main goal for me is to seperate totally from any instos, this way you see the whole picture a lot more clearly with no blurred vision. Then you realise the further you keep away from these instos the better for yourself, your clients and your business. Have a nice weekend, go the Tigers.
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