Suncorp will sell its New Zealand life business to Resolution Life for $NZ410 million ($375.35 million) as it continues to divest non-core assets and focus on its general insurance operation.

Today’s announcement comes as Suncorp moves ahead with the $4.9 billion sale of its bank to ANZ after the Australian Competition Tribunal ruled in February the deal can proceed, overriding an Australian Competition and Consumer Commission decision to block the move.

“The transaction continues the reshaping of the Suncorp Group, and positions both the general and life insurance businesses for ongoing growth and success – benefiting employees, customers and other stakeholders. We believe it is a win-win for our stakeholders,” CEO Steve Johnston said.

“We have simplified our portfolio in recent years under a strategy designed to align everyone at Suncorp around improving the way we deliver value for our Australian and New Zealand customers. We remain committed to the New Zealand general insurance market as part of our refocused group.”

He says Resolution Life will support Asteron Life customers and continue to grow business in New Zealand through the Asteron brand.

Suncorp New Zealand CEO Jimmy Higgins says the sale is in the best interests of Asteron Life’s policyholders and allows the New Zealand team to focus exclusively on general insurance.

The agreement with Resolution Life includes a payment of $NZ250 million ($228.8 million) at completion, with the remainder due 18 months after, during which time interest will be earned on the outstanding balance.

It is expected to complete within nine months, subject to New Zealand regulatory approvals and notifications including from the Reserve Bank of New Zealand, the Overseas Investment Office and the Commerce Commission.

Suncorp sold its Australian life business to TAL Dai-ichi Life for about $725 million in 2018, and its Capital Smart crash repair and ACM Parts businesses were sold in 2019 to AMA Group for $440 million. The insurer also disposed of its authorised representative network, Resilium, in 2019 through a management buyout led by Adrian Kitchin.

Resolution Life says the Asteron Life purchase will provide “significant scale and capability” in the New Zealand market.

“This acquisition further demonstrates our commitment to the Australasian market and our success in growing our business in the region,” Australasia CEO Tim Tez said.

“It follows Resolution Life’s entry into the Australian and New Zealand markets in 2020, and our recent acquisition of AIA Australia’s superannuation and investments business.”

Resolution Life became a major player in the Australian market following its purchase of AMP’s life insurance business in 2020.