Asteron's sale to Resolution Life signals support shift
Despite Asteron's sale, Suncorp's core operating subsidiaries remain unaffected.
Asteron Life has a reduced likelihood of extraordinary support from Suncorp Group, following the announcement of Asteron's sale to Resolution Life, said S&P Global Ratings.
Whilst Suncorp is expected to provide ongoing support to Asteron until the sale's completion due to regulatory and reputational concerns, the CreditWatch placement suggests a potential one or two-notch rating downgrade post-sale.
This anticipation is based on the assumption of Resolution Life's weaker credit quality compared to Suncorp.
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Despite Asteron's sale, Suncorp's core operating subsidiaries remain unaffected, given Asteron's relatively minor contribution to Suncorp's overall capital and earnings.
Suncorp's P/C operations continue to drive its credit profile and subsidiary ratings.
Suncorp Group Ltd.'s issuer and issue ratings remain unchanged, with a CreditWatch negative status pending the sale of its banking subsidiary, Suncorp-Metway Ltd.