Under the deal there would be no change to Asteron Life's operations. Photo: 123RF
Australian financial services firm Suncorp is selling its New Zealand life insurance business Asteron Life for $410 million.
The sale of Asteron Life to global insurance company Resolution Life would include an upfront payment of $250m once the deal is completed, with the rest due 18 months later, during which time interest would be earned on the remaining amount.
The deal is subject to numerous regulatory approvals, which Suncorp said would likely be done within nine months.
Suncorp also owned two general insurance businesses in New Zealand, under the AA and Vero Insurance brands.
Under the deal, the two parties said there would be no change to Asteron Life's operations and would operate under the same brand and as a stand-alone business.
Suncorp group chief executive Steve Johnston said the move continued the "reshaping" of Suncorp.
"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," Johnston said.
"We remain committed to the New Zealand general insurance market as part of our refocused group."
Earlier this year, Suncorp was cleared by Australian regulators to sell its banking business to ANZ Group for A$4.9 billion.
Suncorp New Zealand chief executive Jimmy Higgins said the deal was in the best interests of Asteron Life's policyholders, allowing Suncorp to solely focus on general insurance.
Resolution Life Australasia chief executive Tim Tez said Asteron Life was a "high calibre" business.
"Asteron Life is a successful and growing New Zealand life insurer with well-established and highly respected business operations," he said.
"We are committed to maintaining and enhancing Asteron Life's proposition to advisers and their customers, who are such an integral part of this business."