Insignia Financial divests IOOF Ltd
Insignia Financial has announced it has executed a share sale agreement with Australian Unity to sell its friendly society investment bond business through the divestment of IOOF Ltd for $40 million.
In the announcement to the ASX, the firm said its total sale consideration would comprise $36 million in cash upon completion, plus an additional contingent of up to $4 million payable 12 months after completion, subject to the transition of clients and funds under management (FUM) to Australian Unity.
The firm said that the investment bond business was considered adjacent to Insignia Financial’s core strategic priorities and the sale was expected to provide improved business clarity, while IOOF Ltd’s policy holders would benefit from joining the Australian Unity Group.
IOOF Ltd, which is a friendly society under the Life Insurance Act 1995, provides a range of investment bonds including the Wealth Builder product suite and had approximately $1.1 billion of FUM as at 30 June 2023.
Under a transitional services agreement, Insignia will provide a number of services to IOOF Ltd for an initial period of 12 months.
Additionally, Insignia and Australian Unity would enter a strategic alliance agreement, to support “mutual aim of providing financial wellbeing to all Australians”.
The completion of the transaction remains subject to a relevant
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