Suncorp said it would return $600 million to its investors after completing the $725 million sale of its Australian life insurance unit to TAL Dai-ichi Life.
The $20 billion Queensland-based insurer said on Tuesday it signed a share sale deed after first revealing the deal was in the works last month at its full-year results.
“Allowing for separation and transaction costs, provisions and hybrid capital, Suncorp anticipates returning approximately $600 million to shareholders following the completion of the transaction,” the company said in a statement.
Suncorp had flagged the capital return at its results. The company did not describe what form the capital return would take and declined to discuss the dealÂ further on Tuesday.
The value of Suncorp’s Australian life insurance business had previously been written down by $880 million.Â
The transaction will complete on December 31.Â The deal has no impact on the Suncorp life insurance business in New Zealand.
The dealÂ includes a 20-year distribution agreement with TAL to offer market-leading life insurance solutions through Suncorp’s Australian distribution channels, including its digital channels, contact centres and store network.
Under the terms of the alliance, Suncorp will continue to earn income on the distribution of life insurance.Â