Aug 9 (Reuters) - Suncorp Group Ltd SUN.AX :
* 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