There has seen plenty of merger and acquisition activity among banks and insurers. AIA bought Sovereign from ASB, Kiwibank sold its life business to nib, and Partners Life is in the process of acquiring BNZ Life. The question now is what the future holds for Asteron Life..
Speculation that Brisbane-based Suncorp could be preparing to sell Asteron Life NZ featured in a report published by The Australian on 6 April.
The report states that Asteron Life is valued at around AU$300 million (NZ$454 million) and that investment bank UBS “…is close to the situation”.
In December 2021 Asteron Life delivered an after-tax profit of $6 million, down 79% on the prior corresponding period – a result of lower investment returns and higher claims compared with the prior period.
At the time, Suncorp NZ’s CEO Jimmy Higgins said the business remains “…stable with good profitability and retention”.
In August 2019 Suncorp sold Asteron Life Australia to Japanese firm TAL for AU$725 million – two years after rumours of it being put on the market first appeared in the media. Japanese firms MS&AD and Meiji Yasuda underbid and missed out on securing the company.
Following the sale of Asteron Life AU, Suncorp’s Chief Executive & Managing Director, Michael Cameron said the transaction brought to an end a strategic review of Suncorp’s “…Australian life insurance business”.
As for the future of Asteron Life NZ, a Suncorp spokesperson said: “We don’t comment on market speculation.”
See our story: TAL Buys Asteron Life