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CBA life sale aims for end of year

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The Commonwealth Bank’s (CBA) disposal of its various life insurance businesses and interests is expected to be completed by the end of the year, the bank says.

CBA is selling its life insurance business CommInsure Life to AIA for $2.5 billion. The sale includes a long-term partnership with AIA to provide life products to CBA’s customers.

It is also selling its 37.5% equity interest in BoCommLife to Mitsui Sumitomo Insurance, and its 80% interest in its Indonesian life business PT Commonwealth Life to FWD Group. CBA’s Indonesian arm will also enter into a 15-year distribution agreement with FWD.

The sale of CommInsure to AIA is subject to completing the transfer of CBA’s stake in BoCommLife out of CommInsure. Both groups are exploring how to complete the sale of CommInsure prior to CBA divesting its interest in BoCommLife.