After more than one and a half years, Commonwealth Bank of Australia (CBA) is now nearing the finish line in its sale of the company’s 80% equity interest in Indonesian life insurance business PT Commonwealth Life (PTCL).
According to CBA, the final regulatory approval for the divestment to PT FWD Life Indonesia has been received. Given this development, the transaction is expected to complete next month.
Wrapping up the deal will see PT Bank Commonwealth (PTBC), CBA’s Indonesian banking business, enter into a 15-year distribution partnership with the FWD Group for the provision of life insurance coverage.
“PTCL customers will retain all of the current benefits of their existing policies, and the partnership with FWD will allow PTBC’s banking customers to retain access to high-quality life insurance products,” noted CBA.
“Completion of the divestment is expected to result in a pro forma uplift to CBA’s CET1 (Level 2) capital ratio of seven basis points, based on CBA’s risk weighted assets as at December 31, 2019.”
