TAL Dai-ichi Life Australia has completed a previously announced A$725m ($514m) acquisition of Suncorp Group’s Australian life insurance business.
Image: Suncorp’s Australian life insurance business acquired by TAL. Photo: courtesy of Suncorp Group.
According to TAL, which is a subsidiary of Japan’s Dai-ichi Life Group, the transaction combines two major life insurance businesses. Furthermore, the deal has also resulted in a long term relationship with the Suncorp Group including a portfolio of well-established Australian brands that include AAMI, APIA and GIO.
The parties entered into the deal in August 2018 following the completion of a comprehensive strategic review by Suncorp of its Australian life insurance business.
The Australian general insurer assessed multiple options like additional reinsurance, partnership arrangements and divestment before signing the deal with the Dai-ichi Life subsidiary.
The closing of the deal was subject to the satisfaction of conditions and approvals in Australia and also Japan.
As part of the agreement, the parties agreed to enter into a 20-year alliance, which is expected to create the platform for expansion of TAL’s distribution presence.
As per the terms, TAL will provide life insurance solutions through the Australian distribution channels of Suncorp, including its digital channels, store network and contact centers.
All the Australian life insurance offerings that were previously held by Suncorp, which include Term Life, Income Protection and Funeral Insurance will be added to the current product offered by TAL.
The Dai-ichi Life subsidiary said that the integration and transition of the Suncorp Australian life business will be led by Andrew Howard, the new chief commercial officer. Howard will be responsible for the performance of the former Suncorp Australian life business and also for supporting the transferred employees into TAL.
TAL Group CEO and managing director Brett Clark said: “The integration of Suncorp’s Australian life business will commence immediately and we are confident that the team will deliver an efficient transition, alongside strong business performance, and customer and partner outcomes during the integration period.
“We are very excited to bring the TAL and Suncorp life businesses together. This acquisition provides us with a strong base for continued growth and reflects our ongoing commitment to offering Australians a range of life insurance options to meet their diverse needs.”