The decision was made as part of a plan to simplify Suncorp’s portfolio, and will see LGIAsuper’s funds under administration swell to some $28 billion ahead of its proposed merger with Energy Super.
“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 businesses to take advantage of size and scale benefits,” said Suncorp chief executive for banking and wealth Clive van Horen.
Total consideration is estimated at $45 million, including a fixed amount of $26.6 million as well as regulatory capital. Following completion of the sale, Suncorp will enter into an agreement with LGIAsuper to distribute Suncorp products to Suncorp customers for 18 months. LGIAsuper has also agreed to offer roles to the approximately 130 employees who work directly or indirectly within the wealth business.
