TAL Dai-ichi Life Australia Pty Limited (TAL), a leading Australian life insurance specialist, has today announced that it has entered into a Heads of Agreement to acquire Suncorp’s Australian life insurance business for a cash consideration of approximately $640 million plus adjusted net worth on completion.
Binding legal agreements are expected to be finalised shortly, and the transaction completed thereafter, subject to the satisfaction of conditions and approvals in Australia and Japan.
As a leading Australian life insurance specialist, the acquisition will enable TAL to extend its life insurance expertise to providing high quality life insurance solutions for Suncorp customers, distribution partners and financial advisers.
The acquisition brings together two major life insurance businesses and a long term relationship with the Suncorp Group including a portfolio of well-established Australian brands, including AAMI, APIA and GIO.
The transaction will also create a platform for expansion of TAL’s distribution footprint, with a 20-year strategic alliance agreement for the sale of life insurance products through Suncorp’s distribution network, including its digital channels, contact centres and store network.
TAL Group CEO and Managing Director, Brett Clark, said, “The Suncorp Group is one of Australia’s largest and most important financial services businesses. We are delighted to be partnering with Suncorp and extending our specialist experience to Suncorp’s existing life insurance customers.
“Both TAL and Suncorp share a strong belief in the value of life insurance in the community and a commitment to high quality solutions for our customers and partners.
“This transaction will significantly expand TAL’s market leading presence in Australia and will provide exciting opportunities for us with additional trusted and recognised brands, and a broader group of financial advisers.
“This acquisition will enhance TAL’s scale and capability across the retail, group and direct segments, and will open up important new distribution channels. It will provide 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.
“We look forward to building a successful partnership with Suncorp. Of course, we remain committed to our existing partners and customers, and will be focused on ensuring that we continue to deliver the best possible outcomes for all our partners and stakeholders,” he said.