Economy

AIA extends role in Australian, NZ life-insurance markets

AIA extends role in Australian, NZ life-insurance markets”

AIA, one of the largest insurers in Asia, has operations in 18 markets in Asia-Pacific including Hong Kong, Thailand, Singapore, Malaysia, China and South Korea.

Commonwealth Bank (ASX:CBA) has announced the sale of the Australian and New Zealand arms of its life insurance business, Comminsure Life and Sovereign, to AIA Group for $3.8 billion.

Keng Hooi Ng, chief executive and president of AIA Group, added: "The acquisition of CBA's life insurance businesses and the new 20-year bancassurance partnership with CBA will strengthen AIA's protection market leadership and expand our distribution capabilities in these markets".

CBA had said it planned to sell its life insurance unit, CommInsure, after a scandal in which it was accused of using outdated medical definitions to justify withholding payments to policyholders.

Ian Narev, CBA's chief executive, said: "We have said for some time that while distributing life insurance is a fundamental part of that strategy, we were open to different models for doing so".

CBA also said it was considering spinning off asset management business Colonial First State Global Asset Management in an initial public offering.

The life insurance sale will be recorded as a loss of about $300 million for CBA, but will release approximately $3 billion of common equity tier 1 capital.

Australia's banking regulator has imposed tougher prudential requirements on lenders, prompting them to beef up their balance sheets in recent years.

AIA said in a separate statement the final net cash outflow for the CBA transaction would be about US$1.5 billion after taking into account the proceeds from reinsurance agreements and the free surplus within CommInsure Life and Sovereign.

CBA shares closed down 45¢ to $76.24 today.

The sale follows similar moves by rivals ANZ and National Australia Bank to cut their exposure to wealth management.

Michael Venter, who is now chief financial officer of CBA's global financial services, has been appointed chief operating officer for wealth management and will lead the unit following Ms Spring's departure.

Its life insurance division, CommInsure, had also come under scrutiny over allegations of claims being denied, although the bank was later cleared by corporate watchdog ASIC.

The transaction is expected to be completed in 2018, and make AIA the biggest life insurer in both Australia and New Zealand.



Like this

loading...
loading...

Latest


21 September 2017
Donald Trump's United Nations speech in 5 slides
This characterization is based on religious stereotyping which was evident in Trump's blanket ban of Muslims from visiting the US. Since its founding, every member of the United Nations has been expected toput the interests of its own citizens first.

21 September 2017
New evidence raises doubts about executives' handling of the Equifax breach
The cyberattack occurred through a vulnerability in an open-source application framework that was detected and disclosed in March. The shares have fallen 35 percent since the breach was disclosed after market close in NY on September 7.

21 September 2017
Indicators in View on Shares of Silicon Laboratories Inc (SLAB) — Investing Focus
Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market.

21 September 2017
What the Technicals Say About Opko Health, Inc. (OPK)
In terms of Buy/Sell recommendations, 6 analysts have a consensus rating of 1.67 on the shares of Opko Health Inc (NASDAQ: OPK ). Finally, Geode Capital Management LLC increased its holdings in shares of Opko Health by 7.9% during the 1st quarter.

21 September 2017
Alibaba Group Holding Limited (BABA) Lowered to "Buy" at Vetr Inc
Technical traders typically hold the view that all the data they need to know about a stock can be discovered to using charts. Winch Advisory Services LLC increased its stake in shares of Alibaba Group Holding Limited by 147.4% in the 2nd quarter.

21 September 2017
DEFENDERS Is Netflix's Least Watched MARVEL Premiere, According to Study
Moreover, Netflix evaluates the full performance of its content on its VOD service over a longer span than just 30 days. Why didn't fans embrace the street-level team-up superhero series? But perhaps the answer lies more with audiences.

21 September 2017
Liberty Broadband Corporation (NASDAQ:LBRDA) Trading Down - Short Interest Up 10.67%
Checking on some popular technical levels, Eldorado Gold Corp (ELD.TO) has a 14-day Commodity Channel Index (CCI) of 67.68. A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock.

21 September 2017
Adobe Systems' (ADBE) "Buy" Rating Reiterated at Piper Jaffray Companies
Shares for $279,125 were sold by Lewnes Ann on Wednesday, March 22. 20,000 shares were sold by LAMKIN BRYAN , worth $2.61 million. The software company reported $1.10 EPS for the quarter, topping the Thomson Reuters' consensus estimate of $1.01 by $0.09.

21 September 2017
Professor Asks Students To Complete "White Privilege Checklist"
In addition to "white privilege", students were also made aware of privilege in "gender, sexual orientation, class, and religion". Wellman taught the attendees that there are three "ingredients" to racism - race, prejudice, and power.

21 September 2017
Another bank blow for Guptas as court bid fails
The Bank of China also closed its Gupta accounts just three weeks after one of the companies, VR Laser, had opened an account with it.