AIA, Zurich bid to acquire CBA’s insurance businesses

AIA, Zurich bid to acquire CBA’s insurance businesses | Insurance Business New Zealand

AIA, Zurich bid to acquire CBA’s insurance businesses
AIA Group and Zurich Insurance have lobbed bids to buy Commonwealth Bank’s life insurance business.

The companies put in final and biding offers last week, which could value New Zealand Sovereign business and Australian CommInsure at more than $4 billion, according to a report from The Australian.

CBA is expected to select its preferred bidder this week, since the major bank expects a speedy resolution, the report said.

AIA is most likely to buy the Australian assets, while Zurich might be stuck with the process to buy both – CBA wants a deal for both CommInsure and Sovereign.

The Australian said US life insurance giant MetLife has expressed interest in the NZ assets but was late to the sales process and pulled out to centre its focus on ANZ’s life business.

MetLife has reportedly locked in the funding for its bid to buy ANZ’s life business as the sales process headed towards a finale.

At least one Chinese party also showed interest in the ANZ’s assets, but its initial approach was knocked back because the bank wanted a buyer with experience in wealth management, The Australian said.

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