Suncorp will sell most of its Autosure motor insurance business in New Zealand to Turners, a listed integrated financial services group and major used vehicle retailer.

Turners says it will pay $NZ34 million ($32.23 million) in cash for the acquisition, and settlement will take place on Thursday.

It will own the Autosure brand and Autosure’s mechanical breakdown insurance and credit-related payment protection insurance portfolios.

Suncorp NZ will retain the Autosure motor vehicle insurance customer portfolio and acquire Turners’ equivalent as clients renew.

The two parties will form a new corporate partnership, whereby Suncorp subsidiary Vero will underwrite Turners’ motor vehicle cover under Autosure, Mainstream and other brands owned by the group.

“Turners is New Zealand’s largest seller of cars, trucks and machinery, so it makes perfect sense for Suncorp New Zealand, a leading general and life insurance provider, to go into partnership with it,” CEO Paul Smeaton said.