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

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

The devastated boss of collapsed Gold Coast homebuilder Pivotal Hom...

E-waste recycling business Scipher receives $15 million to fund ‘urban mining’ activities

E-waste recycling business Scipher receives $15 million to fund ‘urban mining’ activities

Melbourne-based e-waste recycling company Scipher has received a $7...

St Baker affirms commitment to Novonix as he exits board to focus on new fund

St Baker affirms commitment to Novonix as he exits board to focus on new fund

Rich lister and power industry titan Trevor St Baker, the largest i...

PEXA purchases 25 per cent stake in AI fintech company Elula

PEXA purchases 25 per cent stake in AI fintech company Elula

In a bid to bolster its fintech offering, online property exchange ...