Suncorp Group has found a new owner for its Australian wealth business.
It’s been revealed today that Suncorp Portfolio Services Limited is being sold to LGIAsuper for around $45 million. The total consideration, which is subject to standard completion adjustments, includes a fixed amount of $26.6 million plus regulatory capital.
“When I was appointed CEO, I said I wanted to align everyone at Suncorp around improving the way we deliver for our insurance and banking customers," said group chief executive Steve Johnston in a release.
“This approach is already delivering results, and the wealth sale will allow the bank team to focus exclusively on the priorities we outlined at the interim result in February.”
The offloading is a result of a strategic review which examined a range of options and the potential impact on 137,000 superannuation members and Suncorp’s people and shareholders.
“After extensive engagement with a number of potential acquirers, we believe that LGIAsuper is best placed to deliver sustainable member outcomes,” noted Suncorp banking & wealth chief Clive van Horen.
“The values and purpose of LGIAsuper, which is also headquartered in Queensland, align closely with those of Suncorp. This transaction will also enable the combined business to take advantage of size and scale benefits.”
Meanwhile, when the sale is completed, Suncorp will enter into an agreement with LGIAsuper to distribute Suncorp superannuation products to customers for 18 months.
Additionally, LGIAsuper has agreed to offer roles to approximately 130 Suncorp employees who work directly or indirectly within the wealth operations.
