CBA divests equity interest in BoCommLife
Commonwealth Bank has announced its divestment of 37.5% equity interest in BoCommLife to MS&AD Insurance Group Holdings, the parent of Mitsui Sumitomo Insurance Co., with the final sale proceeds expected of $886 million, has been approved by the China Banking and Insurance Regulatory Commission (CBIRC).
The total increase in unaudited post-tax statutory earnings related to the completion of BoCommLife and other divestments would be expected to be approximately $840 million, which would be recognised as a non-cash item in the 1H21 result, the company said in the announcement made to the Australian Securities Exchange (ASX).
Further to that, the group said it had revised the calculation of non-cash gains and losses on disposal of previously announced divestments including BoCommLife, CFS, CFSGAM, CommInsure Life and Ausiex.
CBA previously announced that the ultimate completion of the divestment of CommInsure Life would be expected to occur via a statutory asset transfer in the second half of FY21 rather than on the basis of the original share sale structure.
Therefore the completion of the BoCommLife divestment would not affect the completion timing of the CommInsure Life divestment, it said.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
