Suncorp Group Ltd. has signed a share sale deed with TAL Dai-ichi Life Australia Pty Ltd. to sell its Australian life insurance business for about A$725 million.
The announcement comes nearly a month after the two companies entered into a nonbinding heads of agreement over the sale.
The share sale includes a 20-year distribution agreement under which TAL Dai-ichi Life Australia will offer life insurance solutions through Suncorp's Australian distribution channels. Suncorp will continue to earn income on the distribution of life insurance.
Upon completion of the deal, Suncorp expects to return about A$600 million to shareholders. The deal is expected to close by Dec. 31.
The sale of the Australian life insurance business will not affect Suncorp's life insurance business in New Zealand, according to a company release.