As part of Suncorp’s FY18 results today, which included a net profit after tax of $1,059 million and a total dividend of 81 cents, fully franked, Suncorp also announced that it has entered into a non-binding Heads of Agreement to sell its Australian life insurance business to TAL Dai-ichi Life Australia for approximately $725 million.
This follows the completion of a comprehensive strategic review of Suncorp’s Life insurance business. As part of the proposed transaction, Suncorp will enter into a 20-year strategic alliance agreement with TAL to provide life insurance products through Suncorp’s Australian distribution channels, including its digital channels, contact centres and store network.
Completion of the transaction is expected to occur by the end of 2018, subject to the satisfaction of conditions and approvals in Australia and Japan.
What Suncorp said
Suncorp CEO & Managing Director Michael Cameron said the sale of the life company was the superior option, as it will simplify Suncorp’s business model, provide a significant release of capital, which will be returned to shareholders, and be accretive to Cash ROE in FY19.
"The long-term strategic alliance between TAL and Suncorp will allow us to offer excellent value to Suncorp’s Australian customers. The strategic alliance will leverage the strengths of our respective organisations to deliver a superior customer experience,” Mr Cameron said.
“We are pleased to be working with one of Australia’s leading life insurers with the backing of a successful global insurer in Dai-ichi Life.”