Russell McVeagh has advised Commonwealth Bank of Australia (CBA) on the sale of Sovereign, New Zealand’s largest life and health insurance business, to AIA International Limited (AIA) for AU$1.275 billion.
CBA, the parent company of ASB Bank Limited (ASB), has sold its New Zealand life and health insurance business (Sovereign) to AIA Group Limited. The transaction completed yesterday (2 July 2018). AIA International Limited is a wholly-owned indirect subsidiary of AIA Group Limited, a company listed on The Stock Exchange of Hong Kong Limited. AIA International Limited’s New Zealand branch operates its existing New Zealand life and health insurance business.
The sale agreement includes a 20-year partnership with Sovereign and AIA for the provision of life and health insurance products to ASB customers in New Zealand.
The Russell McVeagh team advised CBA on the transaction, working closely with Mark Alexander and Kirsty Cox from the CBA legal team. The transaction was led by senior Corporate partner, Pip Greenwood with assistance from team members Frida Klippel, Aria Molteni-Luporini, Lucy Clifford and Wendy Smith. Additional support was provided by Finance partner, Tom Hunt; Tax partner, Fred Ward; Competition partner, Troy Pilkington; and Employment partner, Kylie Dunn.