CBA takes $150m haircut in CommInsure sale

commonwealth-bank/AIA-Australia/comminsure/

23 August 2019
| By Mike |
image
image image
expand image

The Commonwealth Bank and AIA Australia have entered into further arrangements in a bid to complete the prolonged transaction around the sale of CommInsure, involving a $150 million reduction in the original sale price.

The Commonwealth Bank has announced to the Australian Securities Exchange (ASX) that a revised transaction path comprising a joint cooperation agreement, reinsurance arrangements, partnership milestone payments and a statutory asset transfer.

The announcement said the aggregate proceeds for CBA from the transaction were expected to be $2,375 million – a $150 million reduction from the original sale price.

It said the arrangements were expected to be implemented in a staged manner through the current financial year, with the Commonwealth Bank to receive approximately $750 million of proceeds and distributions by the end of the first half and the remaining amount by the end of the financial year.

The announcement said the two parties had also agreed to grant AIA an option to extend the respective Australia and New Zealand distribution agreements from 20 years to 25 years.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 1 week ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 5 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

3 weeks 1 day ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

2 days 17 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5