Suncorp sells bank for AU$4.9 billion

Suncorp Group has announced an agreement with Australia and New Zealand Banking Group (ANZ) to sell its banking business for AU$4.9 billion. The company said its insurance operations remain the focus of the business in Australia and New Zealand.

“Our purpose of building futures and protecting what matters – the focus of our company for over 100 years – will remain at our core and enable our people to deliver on our vision to create the leading trans-Tasman insurance company,” said Suncorp Chairman Christine McLoughlin.

A media release said the transaction continues Suncorp’s “reshaping and simplification.”

The release said Suncorp’s insurance operations in both Australia and New Zealand will not form part of the transaction and the Group’s head office will continue to be in Queensland.

“Suncorp Group, which is the proud home of several of Australia and New Zealand’s leading and most trusted insurance brands including AAMI, GIO, Shannons, Apia and Vero and of course the Suncorp brand, will continue to offer the same great service to Queenslanders,” said McLoughlin.

Suncorp Group CEO Steve Johnston said the decision to divest the bank had not been taken lightly.

“By combining with a larger banking group, Suncorp Bank will be well positioned for the future,” he said.

As part of the transaction, said the release, both firms made commitments to the state of Queensland including Suncorp’s pledge to establish a Disaster Response Centre of Excellence. The release said this centre will incorporate the latest technology to monitor, prepare for and respond to extreme weather and natural disasters.