Why is Sovereign being sold and to who?
Life insurance companies are increasingly being owned by specialist insurers with global scale, as opposed to banks. It's exciting news for us to part of a global life insurance company and benefit from AIA's expertise and experience, to achieve stronger growth and great outcomes for our customers.
AIA are the largest life insurance company in Asia-Pacific, and also have offices in Auckland, Wellington and Christchurch.
As part of the transaction, ASB will enter into a 20-year distribution agreement with Sovereign and AIA for the provision of Sovereign and AIA life insurance products to its customers in New Zealand.
The transaction is expected to be complete in 2018, but is subject to certain conditions, including regulatory approvals in New Zealand, Australia and China.