CBA sells $500m Chinese life insurer stake

The Commonwealth Bank of Australia (CBA) has said that it is selling its 37.5% take in a Chinese life insurer to Japan’s Mitsui Sumitomo Insurance Co for 3.2 billion yuan ($502.67m).

CBA said in a statement on Wednesday it will record an after-tax gain of about A$450 million ($341.01 million) on the sale of the stake in BoComm Life Insurance, which it jointly owns with China’s Bank of Communications Co Ltd.

The move is part of a bid focus on its core banking business and the completion of the sale will satisfy a condition to the sale of its life insurance businesses in Australia and New Zealand to Hong Kong’s AIA Group announced in September last year.

The deal is part of a growing trend among the bigger Australian banks to reduce their capital requirements as Australia and New Zealand Banking Group both also decided to exit a Cambodian joint venture earlier this month.

Tags:
ABOUT THE AUTHOR
Gary Robinson
Head of Video and Ezines at Open Door Media Publishing. An experienced journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as a fully qualified IFA, Gary works across both International Investment and InvestmentEurope titles. Previous video production credits include projects on BBC, C4 and SKY.

Read more from Gary Robinson

preloader
Close Window
View the Magazine





You need to fill all required fields!