The Commonwealth Bank of Australia (CBA) is up for yet another strategic review, and, this time, it’s the bank’s general insurance business that could be up on the table, according to reports.
CBA, Australia’s eighth largest general insurer according to
PwC data, may divest or outsource its general insurance operations after the initial public offering of Colonial First State Global Asset Management, targeted for the first half of 2018, sources told
Street Talk.
The news follows an eventful year for CBA, which saw the $3.8 billion-sale of its life insurance business to
AIA after a strategic review; court action due to allegations of potential money laundering and terrorist financing; and the announcement of CEO Ian Narev’s resignation.
It has been suggested that such a move remains a real option, even though work has not formally commenced.
As of June 30, the bank’s in-force general insurance premiums stood at $783 million, with latest accounts pointing to lower general insurance income due to the increase in weather-related claims, the report said.
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