Resolution Life says its planned $NZ410 million ($375 million) acquisition of New Zealand insurer Asteron Life will give it “significant scale and capability” in the country.

The deal was announced last week and is expected to complete within nine months, subject to New Zealand regulatory approvals.

“Our growth is predominantly through the acquisition of in-force portfolios of life insurance policies as well as remaining open to growing new business in select strategic markets,” Resolution’s Australasia CEO Tim Tez said. “Asteron Life presents a compelling opportunity to continue to grow through new individual and group customers while continuing to support existing customers.”

Asteron Life has a team of about 165 people servicing more than 180,000 customers and their advisers.

Resolution became a major life insurance provider in Australia following its purchase of AMP’s life business in 2020. Two years later it acquired AIA’s superannuation and investments business for an undisclosed amount.

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

He says Asteron Life will continue to operate as a standalone New Zealand licensed life insurance company under its existing brand, with the same team and management.

For Asteron parent Suncorp, the sale is part of a drive to divest non-core assets and focus on its main general insurance business.

The insurer is moving ahead with the $4.9 billion sale of its bank to ANZ after the Australian Competition Tribunal  ruled in February the deal can proceed.

Suncorp sold its Australian life arm to TAL Dai-ichi Life for about $725 million in 2018 and has also disposed of its crash repair and authorised representative network businesses in recent years.

“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,” 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.”