“Commercial issue” hits Resolution Life/AIA transaction

Resolution Life has informed financial advisers and other stakeholders that its acquisition of AIA Australia’s Superannuation and Investments business has hit a legal hurdle.

The company said that a Federal Court confirmation hearing concerning the transaction had been adjourned because a “commercial issue has arisen between Resolution Life and AIA”.

The company acknowledged the importance of the Federal Court confirmation hearing in terms of enabling AIA’s Superannuation and Investments life insurance policy owners becoming Resolution Life policy owners.

The two companies announced in February that they had entered into an agreement for Resolution Life to acquire AIA Australia’s Superannuation and Investments business.

Resolution Life said the acquisition would deliver significant scale benefits and strengthen the firm’s position as the largest life insurer by assets in Australasia increasing its funds under management and administration by more than $8 million.

At the time of the announcement it was acknowledged that the transaction was subject to regulatory approvals but was expected to close within 12-18 months.