AIA’s purchase of Commonwealth Bank’s life business will further strengthen the group’s leading market position in the Asia-Pacific region, Fitch says.

“AIA will become the top-ranked life insurance provider in both Australia and New Zealand’s life protection markets following the acquisitions,” the ratings company says.

Fitch has affirmed AIA’s financial strength rating of AA and maintained a stable outlook on the group

Commonwealth Bank said last month it had sold CommInsure Life (Australia) and Sovereign (New Zealand) to AIA for $3.8 billion.

The agreement includes a 20-year partnership with AIA for the provision of life insurance to the bank’s customers in the two countries.

Fitch says the arrangement will expand AIA’s distribution network and customer reach, giving it access to 13 million bank customers, representing more than 40% of the combined population of Australia and New Zealand.

The impact of the acquisition on AIA’s financial position will also be minimal due to the relatively small size of the acquired entities and manageable capital needs for the purchase.