Suncorp to sell its life insurance unit for $725mn

The Australian financial services firm, Suncorp, has announced it will be selling its life insurance arm to TAL Dai-ichi Life Holdings.

The Japanese insurance company signed the non-binding Heads of Agreement with Suncorp to acquire the business for $725mn.

TAL Dai-ichi Life Holdings has agreed to sign a legally-binding contract at the end of August, with the deal expected to be complete by the end of December.

“The long-term strategic alliance between TAL and Suncorp will allow us to offer excellent value to Suncorp’s Australian customers,” commented Michael Cameron, CEO and Managing Director of Suncorp.

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“The strategic alliance will leverage the strengths of our respective organisations to deliver a superior customer experience.”

“We are pleased to be working with one of Australia’s leading life insurers with the backing of a successful global insurer in Dai-ichi Life.”

The 20-year agreement will see Suncorp provide life insurance products through its distribution channels, contact centres, and store network.

Whilst revealing the deal, the Australian company also announced it’s full-year results – noting a 34% rise in net profit after tax which hit $1.06bn.

The firm’s dividends reached 81 cents per share, fully franked, with total dividend to investors increasing by 11% from the previous year.