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BRIEF-Commonwealth Bank Of Australia divests Australian and New Zealand life insurance businesses
September 20, 2017 / 10:32 PM / 3 months ago

BRIEF-Commonwealth Bank Of Australia divests Australian and New Zealand life insurance businesses

Sept 21 (Reuters) - Commonwealth Bank Of Australia

* Divests Australian and New Zealand life insurance businesses

* Announces sale of its life insurance businesses in Australia and New Zealand to Aia Group Ltd​

* Deal for $3.8 billion

* Sale agreement also includes a 20-year partnership with AIA for provision of life insurance products to customers in Australia and New Zealand

* Transaction is expected to release about $3 billion of common equity tier 1 capital

* Under terms of partnership, co will continue to earn income on distribution of life & health insurance products

* A pre-completion dividend is also expected to be received by commonwealth bank

* Transaction is expected to result in a pro forma uplift to group’s fy17 cet1 ratio of about 70 basis points on apra basis​

* Transaction and partnership do not include general insurance and comminsure brand will be retained

* Transaction is expected to result in an indicative after tax accounting loss on sale of about $300 million

* Commonwealth Bank is considering a range of strategic alternatives for Bocomm Life equity interest Source text for Eikon: Further company coverage: (bangalore.newsroom@thomsonreuters.com)

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