Commonwealth Bank has sold its 80% stake in an Indonesian life insurance business to Hong Kong-based FWD Group for $426 million.

Under the deal, CBA’s Indonesian banking business will enter a 15-year distribution partnership with FWD, which is expanding its Asian interests.

Swiss Re is a minority shareholder in FWD, the insurance business of investment company Pacific Century Group.

CBA says the PT Commonwealth Life sale reflects a strategy to focus on core businesses and to create a simpler group.

Completion of the transaction is expected in the first half of next year, subject to Indonesian regulatory approvals. CBA anticipates a post-tax gain of $140 million on the sale.