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Suncorp resumes life insurance auction after holiday hiatus

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Suncorp CEO Michael Cameron has Nomura and Luminis Partners advising on the life insurance auction. Louie Douvis

• by
  
• Sarah Thompson
  
• Anthony Macdonald
  
• Joyce Moullakis

It's back into the thick of life insurance Excel models for suitors of Suncorp's life insurance business.

Street Talk understands the bancassurer has quietly re-engaged with first-round bidders this week to ready them for the next stage of the process.

That will kick off sooner rather than later with the opening of a dataroom and final bids are scheduled to be lodged in March, barring any unforseen delays.

Suncorp has Nomura and Luminis Partners advising on the auction, which follows life insurance divestments by three of the four major banks.


US giant American International Group is among parties that were thought to have lobbed an indicative offer for the Suncorp life division, as are players out of Japan including Meiji Yasuda Life, MS&AD Insurance and Dai-ichi Life.

The strategic review has explored all options, including partnerships, joint venture deals similar to the National Australia Bank/Nippon Life set-up, reinsurance arrangements and a sale.

Commonwealth Bank of Australia last year agreed to sell its life insurance operations to pan Asian group AIA, while ANZ Banking Group sealed a divestment with Swiss group Zurich.


The capital intensity and increased regulatory scrutiny in the life insurance industry have prompted a rethink of the merits of operating in the sector.