Skip to main content
  • ENG
  • 繁體
  • Search
  • Home
  • About AIA
    • Our Leadership Team
    • Solutions to Meet Your Needs
    • AIA Vitality
    • AIA investments
    • OUR BRAND
    • Innovation at AIA
    • Environmental Social Governance
    • AIA Leadership Centre
    • Contact Us
    • AIA Scholarships
  • Healthy Living
    • Corporate Social Responsibility
    • AIA HEALTHIER TOGETHER
    • Engaging with the Community
    • The Healthiest Workplace
    • #ONEMOREHOUR
    • eatwell
  • Media Centre
    • Press Releases
    • Facts at a glance
    • Annual reports
    • Photo Gallery
    • Thought Leadership
  • Investor Relations
    • Results & Presentations
    • Share Price
    • Hong Kong Stock Exchange Announcements
    • Shareholder Centre
    • Corporate Governance
    • Credit Investors
    • Financial Calendar
    • Contact Investor Relations
  • Careers
    • Discover AIA Careers
    • Meet Our People
    • Explore Opportunities
    • Become an AIA Agent
AIA
  • About AIA

    About AIA

    For a century, AIA has served the ever-changing needs of millions of people across the Asia-Pacific region.

    Find out more
    • Our Leadership Team

      Get to know our leadership team.

    • Solutions to Meet Your Needs

      Products for individuals and businesses.

    • AIA Vitality

      We support you in taking charge of your health.

    • AIA investments

      Our Investment Capabilities.

    • OUR BRAND

      Helping people live Healthier, Longer, Better Lives.

    • Innovation at AIA

      Find out how we are helping shape the future of insurance.

    • Environmental Social Governance

      Our ESG commitment aims to deliver value to all our stakeholders.

    • AIA Leadership Centre

      A state-of-the-art learning space.

    • Contact Us

      If you have queries, we would love to help!

    • AIA Scholarships

      A major investment in Hong Kong.

  • Healthy Living

    Healthy Living

    Our Healthy Living initiatives, partnership with Tottenham Hotspur Football Club and more.

    Find out more
    • Corporate Social Responsibility

      The focus of our CSR programme is Healthy Living – helping people to live Healthier, Longer, Better Lives.

    • AIA HEALTHIER TOGETHER

      Discover the eight ingredients of a healthier, longer, better life.

    • Engaging with the Community

      Our various sponsorships allow us to engage with multiple audiences in exciting and unique ways.

    • The Healthiest Workplace

      It’s a simple but important fact: employee health is key to business success.

    • #ONEMOREHOUR

      In response to the sleep deprivation crisis in Asia, AIA takes a leadership position to help people reap the benefits of one more hour of sleep.

    • eatwell

      Bringing you delicious recipes and inspiration to eat well for a healthier, longer, better life.

  • Media Centre

    Media Centre

    The latest news from AIA.

    Find out more
    • Press Releases

      Browse recent AIA press releases in our archive.

    • Facts at a glance

      Discover key corporate facts about AIA.

    • Annual reports

      Download the PDF version of our annual reports.

    • Photo Gallery

      Image gallery for media professionals.

    • Thought Leadership

      Read about our regional surveys and studies.

  • Investor Relations

    Investor Relations

    The latest updates and information about AIA Group Limited for shareholders, potential investors and financial analysts.

    Find out more
    • Results & Presentations

      Full details of our results announcements and business presentations.

    • Share Price

      AIA Group Limited (HKEx Stock Code: 1299) share price performance.

    • Hong Kong Stock Exchange Announcements

      Find announcements issued under the Listing Rules.

    • Shareholder Centre

      Information about our shares, General Meetings and more.

    • Corporate Governance

      Information about our Board of Directors, Committee Composition and more.

    • Credit Investors

      The latest credit ratings and information related to our Global Medium Term Note programme.

    • Financial Calendar

      Information about upcoming and past events.

    • Contact Investor Relations

      Get in touch with our Investor Relations Team.

  • Careers

    Careers

    If your ambition is to positively impact the lives of others, a career with AIA empowers you to do just that.

    Find out more

    Corporate Careers

    Careers for Agents

    • Discover AIA Careers

      Learn more about our corporate careers.

    • Explore Opportunities

      Explore the diverse career options with us.

    • Become an AIA Agent

      At AIA we focus on developing best-in-class agents to offer the best advice and support to our customers.

  • Language Select
    • ENG
    • 繁體
  • Search
  • Contact Us
    • Contact Us

2017
Prev | Next
Back to Top
  • {{title}}

    {{label}}
  • AIA further extends protection leadership position in the Australian and New Zealand life insurance markets

    21 September 2017


    Acquisition and 20-Year Strategic Partnerships With

    Exclusivity in the Bancassurance Channel

    Expected to Deliver Significant Value and Scale Benefits

    HONG KONG, 21 September 2017 – AIA Group Limited (“AIA” or the “Company”; stock code: 1299) has reached agreement with the Commonwealth Bank of Australia (“CBA”), subject to securing all necessary regulatory and governmental approvals, to acquire CommInsure Life and Sovereign, CBA’s life insurance business in Australia and life and health insurance businesses in New Zealand. In addition, AIA will enter into 20-year strategic bancassurance partnerships with CBA in Australia and ASB Bank Limited (“ASB”) in New Zealand.

    Ng Keng Hooi, AIA’s Group Chief Executive and President, commenting on the Proposed Transaction, said:

    “This transaction provides a highly-attractive opportunity to transform AIA's businesses in Australia and New Zealand by extending our protection market leadership positions and expanding our distribution capabilities through strategic long-term partnerships with leading retail banks in these markets.

    “The transaction will generate substantial financial benefits for our shareholders through enabling us to deliver further profitable new business growth by leveraging AIA’s capabilities and leading product solutions.

    “The acquisition of CBA’s life insurance businesses and the new 20-year bancassurance partnerships with CBA will strengthen AIA’s protection market leadership and expand our distribution capabilities in these markets. We look forward to welcoming our new customers and colleagues, and working with CBA to deliver innovative insurance products and services that meet the growing financial protection needs of customers across Australia and New Zealand.”

    The gross consideration to be paid with respect to the transaction is AUD3,800 million (which is equivalent to US$3,036 million) payable in cash on completion of the transaction and subject to certain adjustments at completion. After taking into account the proceeds from reinsurance agreements, and the free surplus within CommInsure Life and Sovereign, the final net cash outlay by AIA is expected to be AUD1,882 million (equivalent to US$1,503 million). The aggregate gross embedded value of CommInsure Life and Sovereign was AUD3,531 million (equivalent to US$2,821 million) as at 30 June 2017.

    The acquisition and bancassurance partnerships represent very attractive opportunities that will deliver a range of strategic and financial benefits to AIA:

    • AIA will become the clear number one ranked life insurance provider in both Australia and New Zealand’s profitable individual life protection markets. Australia has the largest life protection market in the Asia-Pacific region ex-Japan. It also has relatively low life insurance penetration and a mortality protection gap estimated at US$1.1 trillion.
    • It is an excellent fit with AIA’s corporate strengths and strategic priorities of achieving profitable market leadership positions and delivering high-quality growth through developing partnerships with leading financial institutions across AIA’s markets in the Asia-Pacific region.
    • It will materially expand and strengthen AIA’s distribution capabilities and customer reach in Australia and New Zealand. CBA is the largest retail bank in Australia, and CBA’s wholly-owned subsidiary, ASB, is the second-largest retail bank in New Zealand.  Together, they have a combined total of 13 million existing bank customers. The existing customer base represents a significant growth opportunity for AIA over the 20-year strategic partnerships.
    • AIA believes that the application of AIA’s differentiated propositions (including AIA Vitality) and industry-leading rehabilitation and claims management experience will result in an enhanced customer experience and increased new business profitability over time.
    • The acquired life insurance businesses are highly complementary to AIA’s existing Australian and New Zealand businesses. The transaction represents a compelling financial investment for AIA and will be accretive to earnings in the first year following completion.

     

    The parties are working towards completion during 2018.

     

    - End -


    About AIA

    AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per cent joint venture in India and a representative office in Myanmar.

    The business that is now AIA was first established in Shanghai almost a century ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$200 billion as of 31 May 2017.

    AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 30 million individual policies and over 16 million participating members of group insurance schemes.

    AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).

    Contacts

    Investment Community

    Paul Lloyd +852 2832 6160
    Yan Guo +852 2832 1878
    Feon Lee +852 2832 4704

    News Media

    Stephen Thomas +852 2832 6178
    Allister Fowler +852 2832 1978
    Emerald Ng +852 2832 4720

    This document contains forward-looking statements relating to the Company and/or the targets of the Proposed Transaction that are based on the beliefs of our management as well as assumptions made by and information currently available to our management. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. When used in this document, the words "will", "plan", "should" and similar expressions are intended to identify forward-looking statements.

    You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements.

    Contact AIA Group 

    Contact AIA Group 

    VISIT OUR MARKET SITES

    This website uses cookies for the purpose of enhancing your user experience. You can find more information on the types of cookies we collect, what we use these for, and how to manage your cookie settings in our Cookie Policy and Privacy Statement .

    About AIA

    Solutions to Your Needs

    AIA Vitality

    Global Principal Partner 

    Visit our Market Sites

    About AIA

    AIA Vitality

    This website uses cookies for the purpose of enhancing your user experience. You can find more information on the types of cookies we collect, what we use these for, and how to manage your cookie settings in our Cookie Policy and Privacy Statement .

    Global Principal Partner 


    Copyright © 2020, AIA Group Limited and its subsidiaries. All rights reserved.
    Terms of Use | Privacy Statement | Cookie Policy