SYDNEY, AUSTRALIA: Suncorp Group Limited (ASX: SUN) has signed a share sale and purchase agreement with Resolution Life to sell its New Zealand life insurance business, Asteron Life Limited.

Suncorp’s New Zealand general insurance business remains unchanged and part of the Suncorp Group.

The sale of Asteron Life for NZ$410 million includes an upfront payment of NZ$250 million at completion with the remainder due 18 months after completion, during which time interest will be earned on the outstanding balance.

The Transaction is subject to New Zealand regulatory approvals and notifications including the Reserve Bank of New Zealand, the Overseas Investment Office and Commerce Commission, and is expected to complete within nine months.

Transaction will result in no change to Asteron Life’s business operations.

Suncorp Group CEO Steve Johnston said, “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.

“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. We believe it is a win-win for our stakeholders.

“We have simplified our portfolio in recent years under a strategy designed to align everyone at Suncorp around improving the way we deliver value for our Australian and New Zealand customers.

We remain committed to the New Zealand general insurance market as part of our refocused group.”

Suncorp New Zealand CEO Jimmy Higgins said, he believed the Transaction was in the best interests of Asteron Life’s policyholders and allowed the New Zealand team to focus exclusively on general insurance, including continuing to create competitive and compelling insurance products and services.

Resolution Life is a global life insurance group focusing on the acquisition and management of portfolios of life
insurance policies.

Resolution Life today has operations in
Bermuda, the U.K., the U.S., Australia and New Zealand.