Commonwealth Bank will offload its stake in Chinese insurer BoComm Life in a $668 million deal that will bolster the bank's capital position and further cut its exposure to wealth management.
As banks look to sell out of the lower-returning life insurance sector, CBA on Wednesday said it would sell its 37.5 per cent stage in BoComm Life Insurance Company to Japan's Mitsui Sumitomo Insurance for RMB 3.2 billion ($668 million).
CBA will make a gain of about $450 million on the sale, it said, raising its common equity tier 1 capital ratio by 13 basis points.
“This transaction represents a further step in simplifying and focusing our portfolio and follows the announcement of the proposed sale of the group’s life insurance businesses in Australia and New Zealand to AIA Group, and the strategic review of the group’s life insurance business in Indonesia,” said CBA's chief executive, Matt Comyn.
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