Asteron NZ acquisition creates trans-Tasman dominance

Barely a month after the announcement of the merger of MLC Life and Resolution Life, the company’s trans-Tasman footprint has grown further via completion of the acquisition of Asteron Life New Zealand from Suncorp Group.

Suncorp announced the sale of the Asteron NZ business to Resolution Life in April last year in what Suncorp, at the time, described as the continuing reshaping of business.

Resolution Life Australasia chief executive, Tim Tez said that while Asteron Life and Resolution Life would continue to operate under separate brand in New Zealand, both businesses would benefit from the combined scale, capabilities and broader reach in the local market.

In December, MLC Life’s parent company, Nippon Life Insurance Company, announced it was acquiring 100% of Resolution Life Australasia to create a new business, Acenda.

The transaction represents a step-change for Resolution Life Australasia whose growth has predominantly been via the acquisition of in-force portfolios of life insurance policies.

The December merger announcement said that the combined Acenda business would “form a primary life insurer open to new business”.

Yesterday’s confirmation of completion of the Asteron NZ acquisition by Resolution Australasia said Asteron Life would remain open to new business and continue to operate under the Asteron Life brand and as a standalone New Zealand licenced and incorporated life insurance company.

The Resolution Life announcement described New Zealand as an important market for Resolution Life with the acquisition providing significant scale, capability and growth prospects.