Suncorp Group has sold off its funds management unit, Tyndall Investments Australia & New Zealand, to Japan's Nikko Asset Management for up to $128.5 million.
Suncorp Life chief executive Geoff Summerhayes said the transaction was consistent with the Suncorp Group's strategic focus on simplifying its businesses.
"This transaction continues the simplification of the life business which will see us focus on life insurance, complemented by superannuation and investments," he said.
"Our strategic review concluded that Suncorp Life was not the natural owner of an investment management business. As a result, we sought a strong external investment management firm to manage Suncorp funds."
Suncorp will remain a major client of Tyndall Investment. Approximately $18 billion of Suncorp-directed funds will continue to be managed by Tyndall Investments.
The deal's total potential value is up to $128.5 million, including $80 million upfront cash to Suncorp, a $5 million access fee, a $30 million option payment in three years time, and $13.5 million for employee equity interests.
