CommBank sells CommInsure, lines up CFSGAM
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.
Recommended for you
As private markets maintain their position in the spotlight amid ASIC scrutiny, an adviser and an investment specialist have highlighted the growing reliance on AFSLs to guide advisers’ use of the asset class.
Vital Business Partners has thrown its support behind ASIC’s review of advice businesses’ use of offshore service providers, urging business to reassess their own set-ups.
Forbes Fava Saville has announced the appointment of a new senior financial planner, expanding its ranks to help serve clients across its Victoria offices.
Marking off its first year of operation, Perth-based advice firm Leeuwin Wealth is now looking to strengthen its position in the WA market, targeting organic growth and a strong regional presence.
