TAL Australia will purchase Suncorp’s Australian life insurance business after the two groups announced they had entered into a Heads of Agreement to proceed with the transaction.
The two groups have yet to complete legally binding sale agreements but in an announcement to the ASX, Suncorp noted this was expected to be completed by the end of the month.TAL stated the deal would cost approximately $640 million plus adjusted net worth on completion with Suncorp telling its shareholders the total cost would be approximately $725 million.
Suncorp also stated it expected the transaction to be completed by 31 December 2018, subject to the satisfaction of conditions and approvals in Australia and Japan.
TAL added that it would maintain the Asteron brand after the completion of the transaction stating it “…looks forward to enhancing the already strong existing Asteron relationships with IFAs, Dealer Groups and Institutional APLs and Platforms”.
“We know that Asteron has a long history and a great understanding of the adviser insurance market and we’re excited about having more depth and expertise to provide the best possible service to advisers and their clients,” TAL stated.
“This acquisition will enhance TAL’s scale and capability across the retail, group and direct segments…”
As part of the transaction, TAL would also sign a 20-year strategic alliance agreement for the sale of life insurance products through Suncorp’s distribution network, including its digital channels, contact centres and store network.