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CBA clears final hurdle to sell Indonesian life business

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Commonwealth Bank (CBA) expects to complete the $426 million sale of its Indonesian life business next month to Hong Kong-based FWD Group after gaining final regulatory approval.

On completion of the deal, CBA’s banking arm in Indonesia will enter into a 15-year distribution partnership with FWD for the provision of life products.

The sale of CBA’s 80% stake in PT Commonwealth Life, first announced in 2018, is part of the bank’s efforts to focus on its core lending business.

CBA has similarly offloaded stakes held in other life businesses such as Sovereign in New Zealand and CommInsure Life to AIA.