CBA sells general insurance arm to Hollard Group

The two firms have struck a 15-year distribution deal for home and motor vehicle insurance.

The Commercial Bank of Australia (CBA) has agreed to sell its general insurance arm CommInsure to South Africa-based Hollard Group, according to media reports.

The two firms have also struck a 15-year product distribution deal for home and motor vehicle insurance products to CBA’s retail customers in Australia.

The transaction consideration includes $468m (A$625m) of upfront, together with deferred payments which are payable upon achieving certain business milestones, and additional investment from Hollard.

CBA will also continue to earn income on the distribution of home and motor insurance products, it said.

The lender will also receive a pre-completion dividend, with the amount subject to the timing of completion, business performance and regulatory approvals.