Commonwealth Bank has received regulatory approval to sell its equity interest in an Indonesian life insurance company.
The bank reported that with the final approval in place it will sell its 80 per cent holding in PT Commonwealth Life to PT FWD Life Indonesia. The transaction is expected to be completed in June.
CBA still owns an Indonesian banking business, PT Bank Commonwealth, which will enter into a 15-year distribution partnership with the FWD Group for the provision of life insurance products.
Life insurance customers will retain all current benefits of their policies.
Completion of the deal is expected to result in a seven basis point increase in the bank’s common equity tier 1 (level 2) capital ratio.
Over the past year CBA has completed a number of divestments. These include the sale of Count Financial to CountPlus and the sale of Colonial First State Global Asset Management to Mitsubishi UFJ Trust and Banking Corp.
It is selling its interest in BoComm Life Insurance to Mitsui Sumitomo Insurance Co. Completion of that deal is still waiting for regulatory approval.
It is still working on the sale of Aussie Home Loans and aligned financial advice businesses.