Despite plans to sell its Malaysian life business operations, the Commonwealth Bank is still keen on expanding its life insurance business into Asia. CBA inherited the Malaysian life business when it acquired Colonial in 2000.

International financial services group executive Garry Mackrell says the company is “in the process of divesting those operations that do not fit with markets of strategic interest. Thailand was sold in October 2001 and we are in the process of selling our Malaysian operations.”

Mr Mackrell said there is “huge growth potential” in Asia, without having to commit too much capital. “Although [they are] volatile, we believe these markets offer significant growth potential, they require relatively little capital and don’t consume material management time. We see these markets as long-term option plays.”

CBA is particularly focused on using its Hong Kong life insurance business – which it also inherited from the $10 billion Colonial takeover – as a way into such markets as China. But the bankers had better be careful – the Asian and NZ life operations have recorded a $27 million first-half operating loss.