The Australian financial services firm, Suncorp, has announced it will be selling its life insurance arm to TAL Dai-ichi Life Holdings.
The Japanese insurance company signed the non-binding Heads of Agreement with Suncorp to acquire the business for $725mn.
TAL Dai-ichi Life Holdings has agreed to sign a legally-binding contract at the end of August, with the deal expected to be complete by the end of December.
“The long-term strategic alliance between TAL and Suncorp will allow us to offer excellent value to Suncorp’s Australian customers,” commented Michael Cameron, CEO and Managing Director of Suncorp.
“The strategic alliance will leverage the strengths of our respective organisations to deliver a superior customer experience.”
“We are pleased to be working with one of Australia’s leading life insurers with the backing of a successful global insurer in Dai-ichi Life.”
The 20-year agreement will see Suncorp provide life insurance products through its distribution channels, contact centres, and store network.
Whilst revealing the deal, the Australian company also announced it’s full-year results – noting a 34% rise in net profit after tax which hit $1.06bn.
The firm’s dividends reached 81 cents per share, fully franked, with total dividend to investors increasing by 11% from the previous year.