Hong Kong-headquartered AIA has reached agreement with Commonwealth Bank of Australia (CBA) for the former to buy CommInsure Life and Sovereign, CBA's life insurance business in Australia and life and health insurance businesses in New Zealand for A$3.8 billion (US$3 billion).
The deal would make AIA the biggest life insurer in Australia and New Zealand, giving it access to 13 million customers of the largest retail bank in Australia and second-largest retail bank in New Zealand, a number equal to more than 40% of the combined population of the two countries, the insurer said yesterday.
AIA will also team up with the bank for 20 years under the agreement to provide life insurance products to customers in Australia and New Zealand, the bank said in a statement yesterday.
Both sides are working to complete the deal in 2018.
For AIA, the deal represents the largest on an absolute basis, bigger than its 2012 purchase of ING Groep’s Malaysian insurance business, according to data compiled by Bloomberg.