Suncorp sells NZ life insurance business

The sale was valued at NZ$410m.

Suncorp Group Limited has sold its New Zealand life insurance business, Asteron Life Limited, to Resolution Life Group's holding company in Australia and New Zealand.

The deal, valued at NZ$410m ($246m), involves an upfront payment of NZ$250m ($150m), with the remainder to be settled 18 months later, accruing interest in the interim period.

The transaction is subject to regulatory approvals from entities including the Reserve Bank of New Zealand, the Overseas Investment Office, and the Commerce Commission, with an expected timeframe of nine months.

Under the terms, Asteron Life will maintain its brand identity, management team, and support for advisors and customers through its local New Zealand team.

Post-acquisition, it will remain open for new business, ensuring a seamless transition for stakeholders.

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Suncorp Group CEO Steve Johnston sees this move as part of the company's strategy to streamline its portfolio and enhance value delivery for customers in Australia and New Zealand. 

"In addition to supporting existing customers, Resolution Life will continue to grow new business in New Zealand through the Asteron Life brand, providing customers with greater access to contemporary products,” he said.

"The Transaction continues the reshaping of the Suncorp Group, and positions both the general and life insurance businesses for ongoing growth and success - benefiting employees, customers, and other stakeholders,” Johnston added.