AIA Australia's market standing boosted by CMLA purchase: report

The consolidation allows access to CMLA's client and distribution network.

AIA Australia’s (AIAA's) standing in the domestic insurance market has been bolstered after it acquired Colonial Mutual Life Assurance Society’s (CMLA) insurance portfolio, reports S&P Global Ratings.

The consolidation also allows AIAA long-term access to the customer and distribution network of CMLA's parent, the Commonwealth Bank of Australia (CBA).

The joint cooperation agreement between AIAA and CBA has now concluded, with the economic and legal responsibility of CMLA policyholders with AIAA, whilst the legal entity of CMLA remains with CBA, the report said.

The purchase was completed on 1 April, following the final leg of the acquisition through a scheme under the Life Insurance Act.