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BRIEF-Suncorp Enters Agreement With Dai-Ichi Life Australia For Insurance Business Sale

Published 09/08/2018, 08:24 am
Updated 09/08/2018, 08:30 am
© Reuters.  BRIEF-Suncorp Enters Agreement With Dai-Ichi Life Australia For Insurance Business Sale
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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

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