Suncorp Group has NZ$250 million more in the bank than it did a week ago after receiving the first payment from the sale of its New Zealand life insurance business Asteron Life.
Suncorp, which is NZ's second largest general insurer, revealed in April 2024 that it had sold Asteron Life to Resolution Life Australasia for NZ$410 million.
Asteron Life provides insurance for life, trauma, income protection, total and permanent disability, and business cover to the NZ market.
Suncorp NZ, Resolution Life Australasia and Asteron Life announced on Monday that the Asteron Life Sale had been completed.
Suncorp Group received a quarter of a billion dollar first payment from Resolution Life Australasia for Asteron Life on the 31st January, having received the necessary approvals of the sale from NZ regulators.
The Reserve Bank, the Overseas Investment Office, and the Commerce Commission all had to approve the sale for it to go ahead.
“This payment represents the first tranche of the NZ$410 million sale price. The remaining NZ$160 million will be paid 18 months after completion,” Suncorp Group told the Australian Securities Exchange (ASX) on Monday.
When the sale of Asteron Life was announced last April, Suncorp NZ Chief Executive Jimmy Higgins said it was in the best interests of Asteron Life’s policyholders and would allow Suncorp NZ to focus “exclusively on general insurance”.
Suncorp NZ now just has the Vero brand under its NZ arm as well as the joint venture in the AA Insurance business and no longer offers life insurance.
NZ an 'important market'
Resolution Life Australasia said on Monday that NZ was an “important market” to the global insurer and the acquisition provided “significant scale capability and growth prospects in this market”.
“Asteron Life will remain open to new business and continue to operate under the Asteron Life brand and as a standalone New Zealand licenced and incorporated life insurance company,” the company said in a joint statement with Asteron Life.
Resolution Life Australasia is a division of the global insurance group Resolution Life which manages 13 million policy holders and US$385 billion (NZ$690 billion) of assets worldwide.
In Australia and New Zealand, Resolution Life Australasia has approximately NZ$32 billion in assets under management in Australia and New Zealand.
Resolution Life Australasia Chief Executive Tim Tez said while Asteron Life and Resolution Life will continue to operate under separate brands in NZ, both businesses would benefit from the combined scale and broader reach in the local market.
Asteron Life CEO Grant Willis added that Asteron Life would be transitioning into one of New Zealand’s “largest life insurance businesses”.
Suncorp NZ’s Higgins said Asteron Life’s sale marked an “important milestone in Suncorp’s evolution into a pure play general insurer”.
“The move will make Suncorp a more streamlined business that’s well placed to succeed in our increasingly complex operating environment. I wish the Asteron Life team all the best for the future, and I look forward to their continued success as part of the Resolution Life group,” he said.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.