AIA completes acquisition of Sovereign Assurance

Combined business will see firm become a market leader in NZ

AIA completes acquisition of Sovereign Assurance

Insurance News

By Krizzel Canlas

AIA New Zealand has successfully completed its acquisition of Commonwealth Bank of Australia’s (CBA) life insurance business Sovereign Assurance.

According to AIA Group regional chief executive Bill Lisle, the acquisition will significantly transform and expand the company’s presence in New Zealand.

“We expect it will deliver a highly positive outcome for our customers, partners and advisers here, as well as our fantastic team of employees,” he said.

The combined business, Lisle noted, will transform AIA’s scale and reach to become the market leader in New Zealand’s life insurance market.

“This deal represents only the beginning of our long-term vision in New Zealand,” he said. “We are committed to helping as many people as possible to live healthier, longer, better lives, through our market-leading programs such as AIA Vitality and our Rehabilitation and Return to Work program.”

On September 2017, AIA said the insurance deal also included a 20-year strategic distribution agreement with ASB Bank in New Zealand.

“Our new long-term partnership with ASB is a significant opportunity for AIA in New Zealand,” Lisle added. “We are confident that ASB’s distribution network, combined with AIA’s regional bancassurance capabilities and life insurance product expertise, will deliver strong insurance propositions for our customers.”

AIA and Sovereign will continue to operate under their respective brands for the immediate future, and until a long-term brand strategy is announced. Both companies will continue to sell their respective products in the near term.

 

 

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