Australia's CBA sells general insurance unit to S. Africa's Hollard Group
Jun 21, 2021 ·
1m 9s
Commonwealth Bank says it would sell its Australian general insurance business to South Africa’s biggest privately-owned insurer Hollard Group, marking the completion of a multi-year divestment strategy following a series...
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Commonwealth Bank says it would sell its Australian general insurance business to South Africa’s biggest privately-owned insurer Hollard Group, marking the completion of a multi-year divestment strategy following a series of scandals.
Australia’s largest lender says it will sell CommInsure General Insurance, for an upfront cash consideration of A$625 million ($468 million), plus deferred payments.
The lender says it expected the sale would deliver a post-tax gain of A$90 million and further increase its common equity tier 1 capital by about A$400 million, which according to analysts ups the odds that CBA will return extra cash to investors.
CBA also expects to get a pre-completion dividend.
show less
Australia’s largest lender says it will sell CommInsure General Insurance, for an upfront cash consideration of A$625 million ($468 million), plus deferred payments.
The lender says it expected the sale would deliver a post-tax gain of A$90 million and further increase its common equity tier 1 capital by about A$400 million, which according to analysts ups the odds that CBA will return extra cash to investors.
CBA also expects to get a pre-completion dividend.
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