The binding legal agreement for TAL Dai-ichi Life Australia (TAL) to acquire Suncorp’s life insurance business has been finalised, subject to regulatory approvals in Australia and Japan and other conditions.

The deal brings together two major life insurers and will create a long-term relationship with the Suncorp Group and its roster of well-established Australian brands, Suncorp, AAMI, APIA and GIO.

The transaction will also expand TAL’s distribution footprint with a 20-year strategic alliance agreement to sell its life insurance products through Suncorp’s distribution network.

The deal is expected to be completed around the end of 2018.

“This acquisition will enable TAL to extend our specialist experience to Suncorp’s existing life insurance customers and partners, while opening up new opportunities for TAL,” said Brett Clark, TAL group CEO and managing director. “This acquisition will enhance TAL’s scale and capability across the retail, group and direct segments, and opens up important new distribution channels. It provides 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. Over the next few months we will finalise planning for transition and integration of our businesses.”

TAL will be able to offer all of Suncorp’s life-insurance products including term life, income-protection, and funeral insurance in addition to its current offerings. The life insurance specialist will also maintain its Asteron brand after the sale.