Suncorp plans to transfer Asteron polices into a single entity to be known as Suncorp Life and Superannuation Ltd from January 1 next year.

A Suncorp spokesman says both brands will remain, despite there being a single holding company.

With increasing compliance and capital reserve requirements, many insurers globally are combining separate insurance businesses into one entity.

In Australia Westpac is merging its life business with BT, and Aviva in the UK is merging all its separate insurance companies into one business.

The Suncorp spokesman told insuranceNEWS.com.au the merger will simplify the life business within the group.

“As both businesses have a similar range of life insurance products, Suncorp Life and Asteron have agreed that it makes sense to combine their businesses and statutory funds,” she said.

“It will help simplify our business and make our clients’ policies easier to manage.”

According to the actuaries’ report on the transfer, Suncorp Life had $118.5 million of annual inforce premiums from 116,016 policies at June 30 this year.

The total amount insured from these policies was $22.3 billion and total assets stood at about $3.1 billion. The total capital adequacy margin for the business was $204.7 million.

Asteron’s annual inforce premiums were $511.9 million at June 30 from 288,875 polices.

The total amount insured was $152.2 billion and its total assets were about $3.3 billion. The total capital adequacy margin for Asteron was $976.2 million.

Suncorp actuary Michael Lubke says in the report the merger will have no adverse effect on policyholders, and as the statutory funds will be combined there will be no financial risk.

He says operational efficiencies will result from the scale of the merged businesses.

The Suncorp spokesman declined to speculate on any possible job losses from the merger.

“There will be efficiencies gained from the simplification of the business through the merging of the two life companies,” he said. “How this will impact employees will be better understood in due course.”

Suncorp Life will now apply to the Federal Court for approval of the transfer.