Suncorp has sold its Australian wealth business for $45 million as the company simplifies its portfolio and hones its focus on its core insurance and banking operations.

The divestment of Suncorp Portfolio Services Ltd to LGIAsuper follows a strategic review and the sale of several other businesses over the past two years.

“When I was appointed CEO, I said I wanted to align everyone at Suncorp around improving the way we deliver for our insurance and banking customers,” Suncorp CEO Steve Johnston said.

“This approach is already delivering results, and the wealth sale will allow the bank team to focus exclusively on the priorities we outlined at the interim result in February.”

The transaction includes a fixed amount of $26.6 million, plus regulatory capital, with the consideration subject to standard completion adjustments.

The impact on profit is expected to be broadly neutral after allowing for separation and transaction costs.

Following completion, Suncorp will continue to distribute the superannuation products to its customers for 18 months, while LGIAsuper will offer roles to about 130 employees who currently work directly or indirectly within the wealth business.

Suncorp sold its Australian Life operations in February 2019 to TAL Dai-ichi Life for $725 million. Since then it has also reviewed other assets, exiting the Resilium distribution business, crash repairer Capital Smart and the ACM Parts recycling business.

The wealth business transaction is expected to be completed next financial year, subject to regulatory approvals.