Suncorp has sold its Australian wealth business, Suncorp Portfolio Services to LGIA Super.
The company announced the transaction to the Australian Securities Exchange (ASX) today saying it had followed a strategic review started in February, last year.
Confirming the transaction, Suncorp group chief executive, Steven Johnston, said the sale agreement was a good outcome for the firm’s 137,000 superannuation members and would continue the simplification of its portfolio.
The announcement noted that LGIAsuper was progressing towards a merger with Energy Super and that together with the Suncorp Wealth business, the combined business would have around $28 billion in funds under administration and approximately 250,000 members.
It said total consideration was estimated at $45 million, which included a fixed amount of $26.6 million, plus regulatory capital.
Following completion of the sale, Suncorp will enter into an agreement with LGIAsuper to distribute Suncorp superannuation products to Suncorp customers for 18 months.