AIA Group Ltd (AIA) is pondering selling some of its life insurance assets in Australia to Resolution Life, according to Bloomberg.
People familiar with the matter, who decided to remain anonymous, claimed that selling life insurance assets in Australia is part of AIA’s strategy to streamline its portfolio. They named Resolution Life the likeliest buyer for certain policies related to the insurance giant’s acquisition of Commonwealth Bank of Australia’s (CBA) life insurance business in 2017, Bloomberg reported.
A transaction could help AIA raise a few hundred million dollars, and it is now working with a financial adviser on the matter – drawing interest from other bidders, including private equity firms. However, considerations are still ongoing, and no final decision has been made, the sources said.
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The sale of AIA’s Australian life insurance assets follows its sale of almost US$10 billion of investments in coal mining and coal-fired power businesses amid pressure on financial firms to cut ties with the sector. In addition, the insurer said it will not make new investments in businesses directly involved in coal mining or generating electricity from coal.
AIA chief executive officer Lee Yuan Siong confirmed in an interview in Hong Kong that the insurance giant buys “green bonds” and has an exclusion list to ensure it is not investing in industries that are major pollutants. It also helps companies it invests in to reduce their carbon footprint.
