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CBA to sell life insurance unit to AIA Group for $3 billion

Staff Writer |
Commonwealth Bank of Australia (CBA) said it had agreed to sell its life insurance arm to Hong Kong’s AIA Group for $3.05 billion, in the biggest Asian buyout of an Australian financial services firm.

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CBA also flagged a possible wealth management IPO as Australia’s major lenders come under regulatory pressure to boost capital in the face of a frothy property market.

National Australia Bank sold an 80 percent stake of its life insurance unit to Japan’s Nippon Life Insurance last year.

Australia and New Zealand Banking Group has said it may sell its life insurance and wealth divisions, while Westpac Banking also has started exploring a possible life insurance sale, according to reports in the Australian media.

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