Suncorp to sell Australian wealth business for $45 million

Suncorp to sell Australian wealth business for $45 million

Suncorp (ASX: SUN) will offload its Australian wealth business Suncorp Portfolio Services Limited (SPSL) to LGIAsuper for $45 million as part of the company's plan to simplify its portfolio.

According to SUN CEO Steve Johnston the sale agreement is a good outcome for the company's 137,000 superannuation members.

"When I was appointed CEO, I said I wanted to align everyone at Suncorp around improving the way we deliver for our insurance and banking customers," Johnston said.

"This approach is already delivering results, and the wealth sale will allow the bank team to focus exclusively on the priorities we outlined at the interim result in February."

The sale of SPSL comes as LGIAsuper is progressing towards a merger with another Queensland-based fund, Energy Super.

Together with Suncorp's wealth business, the combined entity will have around $28 billion in funds under administration and approximately 250,000 members.

"After extensive engagement with a number of potential acquirers, we believe that LGIAsuper is best placed to deliver sustainable member outcomes," Suncorp CEO of banking and wealth Clive van Horen said.

"The value and purpose of LGIAsuper, which is also headquartered in Queensland, align closely with those of Suncorp.

"This transaction will also enable the combined business to take advantage of size and scale benefits."

Once the sale is completed, Suncorp will enter into an agreement with LGIAsuper to distribute superannuation products to Suncorp customers for 18 months.

The transaction is expected to be completed in FY22, subject to regulatory approvals.

Shares in SUN are up 0.62 per cent to $10.48 per share at 12.49pm AEST. 

Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Employee resilience is key to business resilience
Partner Content
Employee mental health and wellbeing is top of mind for Australian businesses, and or...
Aon
Advertisement

Related Stories

Lorna Jane slapped with $5 million fine over false 'anti-virus activewear' claims

Lorna Jane slapped with $5 million fine over false 'anti-virus activewear' claims

Sportswear brand Lorna Jane has been ordered to dish out $5 milli...

NZ to suspend Australian quarantine-free travel for eight weeks

NZ to suspend Australian quarantine-free travel for eight weeks

The worsening COVID-19 situation in NSW with transmission into ot...

TGA grants provisional approval of Pfizer COVID-19 jab for those aged as young as 12

TGA grants provisional approval of Pfizer COVID-19 jab for those aged as young as 12

The Therapeutic Goods Administration (TGA) has provisionally appr...

Brisbane flight attendant tests positive after several regional flights 11 days ago

Brisbane flight attendant tests positive after several regional flights 11 days ago

A Qantas flight attendant who lives in Brisbane has tested positi...