Suncorp Group says it is focused on being a “pureplay insurer” after completing the $4.9 billion sale of its banking arm to ANZ today.

The deal, aiming to free up resources for Suncorp to focus solely on its insurance businesses in Australia and New Zealand, was announced in July 2022 but was rejected by the Australian Competition and Consumer Commission.

The sale was finally given the go-ahead in February this year after Suncorp and ANZ appealed to the Australian Competition Tribunal to overturn the ACCC ruling. In June, Treasurer Jim Chalmers also backed the deal.

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

“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.

“We are also pleased to be able to get on with the important job of delivering on the commitments agreed with the Queensland government as part of this transaction, including investment in a disaster response centre of excellence out of our Brisbane headquarters, and the establishment of a regional hub in Townsville set to employ about 120 people.”

ANZ says the Suncorp bank team of 3000 workers will join its business tomorrow.

Suncorp chair Christine McLoughlin says the board still expects net sale proceeds of about $4.1 billion and intends to return most of it to shareholders via a capital return and a smaller fully franked special dividend component.

“Shareholder approval will also be sought on resolutions pertaining to the sale of the bank at our ... annual general meeting to be held in October,” she said. “This includes the return of capital and consolidation of ordinary shares, and the required amendments to the Suncorp constitution to reflect Suncorp’s commitments to the Queensland government under the Metway Merger Act.”