Suncorp Group is under a ratings review following the sale of its bank business to ANZ, Fitch says.

The group is a “pureplay” general insurance provider in the Australian market after completing the $4.9 billion deal last week.

In New Zealand, Suncorp is selling its Asteron Life business to Resolution Life. The $NZ410 million ($375 million) deal was announced in April and was expected to close within nine months.

Fitch Ratings says it expects to have a have a clearer picture of the group’s capital position about the time of its annual results announcement later this month.

The ratings agency placed Suncorp and its main AAI non-life insurance business’ A+ score on rating watch negative on July 22 2022 after the group announced the bank sale.

“This was to reflect the possible drop in [Suncorp’s] prism global score upon the completion of the sale,” Fitch said.

“The score, which was supported by the group’s large consolidated capital base, will be affected by the smaller post-sale capital base, but this will be offset to some extent by lower target capital requirements.”

Fitch says the bank sale will allow Suncorp to focus on its core non-life insurance operation and support its business profile over time.

Once it completes the sale of Asteron Life, it will be a pureplay non-life insurer, Fitch says.

Suncorp CEO Steve Johnston says completion of the bank sale is a significant strategic milestone for the business.

“As a pureplay insurer, Suncorp Group can now look forward to investing in our business and delivering greater value for our customers and communities, as well as our shareholders,” he said. “Our capacity to innovate, further digitise and deliver better customer experiences, as well as tackle critical challenges such as the impacts of climate change, will also be significantly enhanced.”