Suncorp supports ACT’s authorisation of Suncorp Bank sale

Suncorp supports ACT’s authorisation of Suncorp Bank sale | Insurance Business New Zealand

Insurance News

Suncorp supports ACT’s authorisation of Suncorp Bank sale

The sale is expected to be completed by mid 2024

Insurance News

By
Abigail Adriatico

Suncorp Group Limited, an insurance company, has welcomed the Australian Competition Tribunal (ACT)’s decision to authorise the proposed sale of its Suncorp Bank to Australia and New Zealand Banking Group (ANZ).

Christine McLoughlin, Suncorp Group’s chairman, had said that the Queensland government will benefit from the transaction as both Suncorp and ANZ will be announcing significant jobs as well as investment packages which will be part of the bank sale process.

“Suncorp’s package, worth around $25 million, will not only bring continued investment and jobs in the state of Queensland, but through further investment in our end-to-end disaster management capability and natural hazard resilience initiatives, will bring benefits to customers and communities right across Australia and New Zealand,” McLoughlin said in a news release.

“Importantly, our bank customers will have access to a wider range of products and services, and our people a broader range of banking career opportunities under ANZ, which has committed to maintaining and growing Suncorp Bank’s strong Queensland presence,” she said.

While it has already received the approval of the ACT, the Suncorp Bank sale will still be subject to the amendment of the State Financial Institutions and Metway Merger Act and final approval from the Federal Treasurer under the Financial Sector (Shareholdings) Act.

Should the sale be received, its completion is expected to occur by mid-2024.

McLoughlin said that following the completion, the board will be committed to returning any capital in excess to shareholders.

Steve Johnston, Suncorp Group’s CEO, stated that the sale will make Suncorp a dedicated Trans-Tasman insurance company.

“Our ability to meet the rapidly evolving needs of insurance customers and address increasingly complex challenges such as climate change and affordability will be significantly strengthened through dedicated investment as a pureplay insurance company,” he said.

Johnston added that Suncorp Group will continue to be fully committed to the bank while the process is ongoing.

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