AIA Australia's (AIAA) acquisition of The Colonial Mutual Life Assurance Society's (CMLA) insurance portfolio supports AIAA's position in the Australian life insurance market, S&P Global Ratings says.
AIAA completed on 1 April 2021 the final leg of its acquisition of CMLA's portfolio through a scheme under the Life Insurance Act. AIAA has said that the scheme would not affect any policy terms and conditions, nor how policyholders and customers do business with their insurer.
S&P says that AIAA remains a highly strategic subsidiary of AIA Group. Its ratings of the insurer continue to reflect the extent of expected extraordinary support from the group.
In a statement, S&P said, “We view the business profiles of AIAA and the acquired business as complementary. The consolidation of CMLA's insurance portfolio supports AIAA's presence as a leading participant in the Australian life insurance market. It also provides long-term access to the customer and distribution network of CMLA's parent, the Commonwealth Bank of Australia (CBA). The joint cooperation agreement between AIAA and CBA has now concluded, with the economic and legal responsibility of CMLA policyholders with AIAA, while the legal entity of CMLA remains with CBA.”
CMLA also included other brands such as Colonial and Commonwealth Financial Services.