Suncorp confirms life sale to TAL
Suncorp Limited has used its annual results to confirm that it has signed a non-binding Heads of Agreement with TAL Dai-Ichi Life Australian to sell its Australian Life Insurance business.
The company told the Australian Securities Exchange that the consideration was expected to be around $725 million with the transaction resulting in a non-cash write-down to goodwill and net assets of around $880 million.
The news came as Suncorp reported a 1.5 per cent decline in net profit after tax to $1,059 million on cash earnings of $1,098 million.
The directors declared a fully franked dividend of 73 cents per share.
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
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.
