Suncorp Group Limited has engaged in a share sale and purchase agreement with Resolution Life NOHC, the parent company of Resolution Life Group in Australia and New Zealand, to sell its New Zealand life insurance business, Asteron Life Limited, for NZ$410 million.
The agreement specifies that the sale price of NZ410 million comprises an initial payment of NZ250 million upon completion, with the remaining balance set for disbursement 18 months post-completion, accruing interest in the interim period.
This transaction is subject to securing regulatory approvals and notifications in New Zealand from entities such as the Reserve Bank of New Zealand, the Overseas Investment Office, and the Commerce Commission. The expected timeframe for finalizing this deal is within nine months.
The acquisition of Asteron Life is set to provide Resolution Life with a substantial presence and expanded capabilities in the New Zealand market, thereby strengthening its market position for the benefit of its clients.
It is important to note that Suncorp’s general insurance operations in New Zealand will continue unaffected and remain under the jurisdiction of the Suncorp Group.
Asteron Life is anticipated to maintain its operational identity under the Asteron brand, with continuity in its management team, to ensure ongoing support for advisers and customers through the existing local team in New Zealand.
Steve Johnston, the CEO of Suncorp Group, conveyed his optimism about the deal, highlighting Resolution Life’s dedication to growing the business under the Asteron Life brand to provide customers with a broader range of modern products.
This strategic decision aligns with Suncorp Group’s overall plan to streamline its portfolio and enhance the value proposition for customers across Australia and New Zealand. The company is committed to the general insurance sector in New Zealand as part of its refined business focus.
Jimmy Higgins, CEO of Suncorp New Zealand, confirmed that the transaction is in the best interest of Asteron Life’s policyholders, allowing the local team to focus exclusively on general insurance offerings, ensuring competitive and attractive insurance solutions.
Tim Tez, Chief Executive Officer of Resolution Life Australasia, emphasized the importance of this acquisition in strengthening the company’s presence in the Australasian market. This move follows Resolution Life’s entry into the Australian and New Zealand markets in 2020 and its recent purchase of AIA Australia’s Superannuation and Investments business.
Resolution Life’s growth strategy primarily revolves around acquiring existing life insurance portfolios while also exploring new opportunities in key markets. The company is committed to enhancing Asteron Life’s operations in New Zealand, maintaining its independence as a licensed life insurance provider under the current brand, and continuing to support advisers and customers through the existing dedicated team and management structure.