News: SUN Suncorp Enters Agreement With Dai-Ichi Life Australia For Insurance Business Sale

Aug 9 (Reuters) - Suncorp Group Ltd (SUN) :

• SUN REACHES AGREEMENT ON AUSTRALIAN LIFE BUSINESS
• FY NET PROFIT AFTER TAX OF $1,059 MILLION
• HAS ENTERED INTO A NON-BINDING HEADS OF AGREEMENT TO SELL ITS AUSTRALIAN LIFE INSURANCE BUSINESS TO TAL DAI-ICHI LIFE AUSTRALIA
• DEAL FOR APPROXIMATELY $725 MILLION
• SUNCORP ANTICIPATES RETURNING APPROXIMATELY $600 MILLION TO SHAREHOLDERS FOLLOWING COMPLETION OF TRANSACTION
• COMPLETION OF TRANSACTION IS EXPECTED TO OCCUR BY 31 DECEMBER 2018
• COMPLETION OF TRANSACTION IS EXPECTED TO RESULT IN AN AFTER TAX NON-CASH LOSS ON SALE IN FY19 OF ABOUT $880 MILLION
• CONFIRMED ITS TARGET OF A CASH ROE OF 10% FOR FY19
• WILL CONTINUE TO EARN INCOME ON DISTRIBUTION OF LIFE INSURANCE
• ASSUMING COMPLETION BY 31 DECEMBER 2018, TRANSACTION IS EXPECTED TO BE MARGINALLY ACCRETIVE TO CASH RETURN ON EQUITY IN FY19
• AGREEMENT INCLUDES 20-YEAR STRATEGIC ALLIANCE WITH TAL; UNDER ALLIANCE, CO TO CONTINUE TO EARN INCOME ON DISTRIBUTION OF LIFE INSURANCE