Suncorp sells Asteron Life to Bermuda-based Resolution Life in $410m deal

Asteron Life's product offering and brand to remain as is following sale to Resolution Life.

Suncorp Group has completed the sale of its life insurance business, Asteron Life, to Resolution Life Australasia for $410 million.

Asteron’s Life’s staff, product offering, and adviser relationships will be retained following the acquisition by the giant, whose parent company is based in Bermuda.

Asteron Life will also continue operating under its existing brand and remain open for new business – unlike some of the other life insurance businesses acquired by Resolution Life.

Resolution Life already has a strong presence in New Zealand, having bought AMP’s life insurance book for A$3 billion in 2020.

The Reserve Bank of New Zealand took 18 months to approve the sale, as it was wary Resolution Life wanted to use a “run-off” model – make money by managing existing policies, rather than sell new ones.

The regulator put a number of conditions around the controversial sale to protect the 200,000-odd AMP Life policyholders.

Resolution Life assured it was taking a different approach with Asteron Life and wanted to grow the business.

Asteron Life’s executive general manager, Grant Willis, will also become chief executive and Asteron Life will be a standalone New Zealand-licensed and incorporate insurance company.

Willis said the deal would see Asteron Life transition into one of New Zealand’s largest life insurance businesses.

Asteron Life accounted for 11% of New Zealand life insurance assets in the financial year ended June 2024, according to Fitch ratings agency.

A Commerce Commission spokesperson said Resolution Life engaged with the competition watchdog when it announced its intention to acquire Asteron Life in April last year.

“After reviewing the information provided by Resolution Life and undertaking an initial assessment into the level of competitive constraint that would remain in the market post-acquisition, the Commission did not consider there was likely to be a substantial lessening of competition as a result of the merger, and did not review the proposed acquisition further,” the spokesperson said.

Suncorp New Zealand chief executive Jimmy Higgins said the transaction marked an “important milestone in Suncorp’s evolution into a pure play general insurer”.

Suncorp is one of several financial services companies, which has over the past decade simplified its business by getting rid of its life insurance book.

Resolution Life Australasia chief executive Tim Tez said the acquisition demonstrated the company’s “commitment to growth in the New Zealand market”.

“While Asteron Life and Resolution Life will continue to operate under separate brands in New Zealand, both businesses will benefit from the combined scale, capabilities and broader reach in the local market,” he said.

“We look forward to welcoming our new colleagues, customers, and advisers, and remain committed to ensuring a smooth integration process that prioritises a good experience.”

Jenée Tibshraeny is the Herald’s Wellington business editor, based in the Parliamentary Press Gallery. She specialises in government and Reserve Bank policymaking, economics and banking.