Australia’s largest bank, Commonwealth Bank of Australia, is selling its Hong Kong insurance business to Canada’s Sun Life Financial for about $450 million.
Commonwealth reports that it was approached by Sun Life, which is aiming to expand its market presence in Asia. The bank is selling CMG Asia, CommServe and Financial Solutions, covering its Hong Kong-based life insurance, pensions administration and financial planning.
The sale should be completed within three months, but, due to its financial planning joint venture with Cheung Kong group, Commonwealth reported that it would keep its banking and funds management businesses in Hong Kong.
In other news, Commonwealth’s long-serving CEO, David Murray, will step down later this year, replaced by Ralph Norris, the current CEO of Air New Zealand.