There was significant interest this week following news Resolution Life’s purchase of Asteron Life will make it the second largest insurer in the country…
Resolution Life Australia’s acquisition of Suncorp’s Asteron Life for $410m is notable because it plans to develop the business. Historically, the company has bought closed books in what one might term a ‘sinking lid’ business model.
The purchase of Asteron Life, which Resolution Life Australia hopes to complete within nine months subject to regulatory approval, will make the firm the second largest insurer for annual premium income in the country after AIA. Asteron Life employs 165 people, and has 180,000 customers served by an army of financial advisers.
The purchase follows Resolution Life Australia’s entry into the Australian and New Zealand markets in 2020 when it bought AIA Australia’s superannuation and investment businesses and AMP Life.
Resolution Life Australasia CEO, Tim Tez says that while the company’s growth is predominantly through the acquisition of in-force portfolios of life insurance policies, it is open “…to growing new business in select strategic markets”.
“Asteron Life presents a compelling opportunity to continue to grow through new individual and group customers while continuing to support existing customers,” he says.
“Resolution Life will support the Asteron Life business with its momentum and success in the New Zealand life insurance market.
“As a trusted life insurer, Asteron Life will continue to operate as a standalone New Zealand licenced life insurance company, under its existing brand in New Zealand and support advisers and their customers using the same dedicated team and management.
Resolution Life Australasia is part of Resolution Life. It has approximately A$28.4bn (NZ$30.4bn) in assets under management and 1.1 million customers across Australia and New Zealand.
See our report Asteron Life Sold to Resolution Life.