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Suncorp anticipates A$30M in 'stranded costs' from sale of life insurance biz

Suncorp Group Ltd. expects approximately A$30 million pretax of annualized "stranded costs" from the sale of its Australian life insurance business to TAL Dai-ichi Life Australia Pty Ltd.

Suncorp projects a pretax hit of approximately A$10 million in its 2019 financial results, assuming completion of the sale on Feb. 28, 2019. The company will work to remove those stranded costs by the end of the 2020 financial year.

The Australian life insurance result for the first half of fiscal 2019, combined with the participating wealth business previously reported through the banking and wealth function, will be disclosed as a separate line item in investor pack tables. This will incorporate the performance of Suncorp Life & Superannuation Ltd., the entity being sold, as well as other discontinuing distribution activities.

Suncorp will release its first-half 2019 results on Feb. 14, 2019.