Resolution Life expands New Zealand presence
Bermuda-based Resolution Life's Australian subsidiary has bought New Zealand life insurer Asteron Life for $230 million.
Resolution Life, which itself is in the process of being bought by Nippon Life in a deal valuing the business at $10 billion, bought the life insurer from Australian insurer Suncorp Group for NZ$410 million.
Asteron’s Life’s staff, product offering, and adviser relationships will be retained following the acquisition and it will continue operating under its existing brand and remain open for new business.
The New Zealand Herald said Resolution Life already has a strong presence in New Zealand, having bought AMP’s life insurance book for A$3 billion in 2020.
The Reserve Bank of New Zealand took 18 months to approve the sale, as it was wary Resolution Life wanted to use a run-off model – make money by managing existing policies, rather than sell new ones, the newspaper said.
Resolution Life assured it was taking a different approach with Asteron Life and wanted to grow the business.
Asteron Life’s executive general manager, Grant Willis, will also become chief executive and Asteron Life will be a standalone New Zealand-licensed and incorporate insurance company.
Resolution Life said New Zealand was an important market for the business, providing significant scale, capability and growth prospects in this market.
“We are delighted to have successfully completed the acquisition of Asteron Life, said Tim Tez (pictured), CEO of Resolution Life Australasia. “This is a further demonstration of our commitment to growth in the New Zealand market and reaffirms our capability in the acquisition and integration of complex transactions, working in close partnership with current owners.
“While Asteron Life and Resolution Life will continue to operate under separate brands in New Zealand, both businesses will benefit from the combined scale, capabilities and broader reach in the local market.”
Willis said: “We are thrilled to be part of Resolution Life Australasia. We welcome their support of our business which will enable us to deliver our strategic growth agenda and continue to serve our New Zealand policyholders.
“The Asteron Life team, our market leading products and strong adviser relationships will all be retained providing continuity to our people, customers and advisers as we transition into one of New Zealand’s largest life insurance businesses.”
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