Suncorp sells its super business to LGIA Super

Suncorp has sold its Australian wealth business, Suncorp Portfolio Services to LGIA Super.

The company announced the transaction to the Australian Securities Exchange (ASX) today saying it had followed a strategic review started in February, last year.

Confirming the transaction, Suncorp group chief executive, Steven Johnston, said the sale agreement was a good outcome for the firm’s 137,000 superannuation members and would continue the simplification of its portfolio.

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The announcement noted that LGIAsuper was progressing towards a merger with Energy Super and that together with the Suncorp Wealth business, the combined business would have around $28 billion in funds under administration and approximately 250,000 members.

It said total consideration was estimated at $45 million, which included a fixed amount of $26.6 million, plus regulatory capital.

Following completion of the sale, Suncorp will enter into an agreement with LGIAsuper to distribute Suncorp superannuation products to Suncorp customers for 18 months.

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Strange. I can understand a business making a profit buying another business. But a non-profit organisation??? Where did the money come from? What is the justification?

Probably from member accounts under the ‘alternate assets and private equity’ allocation!

Don't confuse not for profit, and profit for members. Without making a profit, you cant invest in the business (technology, innovation, services etc). The profit goes to the reserve, where this acquistion would presumably be acquired from. Cant see how this is in member's best interests mind you...

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