Herbert Smith Freehills is pleased to have 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.
Herbert Smith Freehills is pleased to have 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.
Under the arrangements, CBA has received an upfront payment of A$500 million and the full economic interests associated with CommInsure Life (excluding the Group’s 37.5% equity interest in BoCommLife Insurance Company Limited) have been transferred to AIA, with AIA obtaining an appropriate level of direct management and oversight of the business. Additionally, Colonial Mutual Life Assurance Society Limited — the key life insurance entity of CommInsure Life — has implemented reinsurance arrangements that are expected to result in a distribution to CBA in 1H FY2020.
The 25-year Australian distribution agreement between CBA and AIA has also commenced, effective from 1 November 2019.
The Herbert Smith Freehills team was led by partner Tony Damian, with the assistance of senior associates Amelia Morgan and Nick Conway, and 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.
The team worked closely with CBA’s internal M&A Legal function, led by Mark Alexander and supported by Cecilia Cobb and Simon Teh.
The Herbert Smith Freehills team 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 sale or statutory asset transfer.
“This is a very important milestone in CBA’s life insurance divestment,” said Mr Damian, who is also Co-Chair of the firm’s Global Banks Sector Group.
Herbert Smith Freehills, with a team led by Tony Damian, also advised CBA on the A$4.2 billion sale of its global asset management arm, Colonial First State Global Asset Management and the sale of financial advice business Count Financial, both of which completed earlier this year.