Suncorp Group has finalized the sale of Asteron Life, its New Zealand life insurance business, to Resolution Life NOHC for NZ$410 mn.
The company stated that its general insurance business in New Zealand remains unchanged and continues as part of Suncorp.
Suncorp received NZ$250 mn plus the estimated excess capital in the business as of Jan. 31. The final amount of excess capital will be determined through post-completion accounts processes.
The initial payment is part of the NZ$410 mn sale price. The remaining NZ$160 mn will be paid 18 months after the deal closes.
As part of the agreement, Suncorp entered into a transitional services arrangement for up to two years.
The company will release its fiscal first-half results on Feb. 12.
Previously, Suncorp reported higher net income for fiscal 2023-2024, following the sale of its bank. The year was marked by challenges from natural disasters and inflation.
Australia’s federal treasurer approved Suncorp’s bank divestiture, allowing its sale to Australia and New Zealand Banking Group. The transaction moved forward after the Australian Competition Tribunal approved it in February and Queensland’s government passed supporting legislation in June.
