Commonwealth Bank of Australia and AIA Australia Limited reach agreement
Herbert Smith Freehills has advised Commonwealth Bank of Australia on its agreement with AIA Australia Limited.
Firm: Herbert Smith Freehills (Commonwealth Bank of Australia)
Deal: Herbert Smith Freehills (CBA) has advised Commonwealth Bank of Australia (CBA) on the implementation of its joint cooperation agreement with AIA Australia Limited in relation to CBA’s Australian life insurance business, CommInsure Life.
Value: $500 million upfront.
Key players: The team was led by partner Tony Damian, with the assistance of senior associates Amelia Morgan and Nick Conway. Also supporting were solicitors Tim Coorey and Imogen White.
Partner Michael Vrisakis, special counsel Philip Hopley and solicitor Sky Kim from the firm’s financial services practice also advised on the matter.
Deal significance: Under the arrangements, CBA received an upfront payment of $500 million and full economic interests associated with CommInsure Life have been transferred to AIA. AIA has obtained an “appropriate level” of direct management and oversight of the business.
Colonial Mutual Life Assurance Society Limited, the key insurance entity of CommInsure Life, has implemented reinsurance arrangements that are expected to result in a distribution to CBA.
HSF is advising CBA as it continues to progress the transaction path for the planned divestment of CommInsure Life by either the ultimate completion of the share sales or statutory asset transfer.
“This is a very important milestone in CBA’s life insurance divestment,” Mr Damian said.