Daily Management Review

Hong-Kong’s AIA Group set to acquire Commonwealth Bank of Australia


09/20/2017


Australia’s insurance market is an attractive proposition for foreign insurers given the size of its population and the growth rate of its economy.



According to two sources with direct knowledge of the matter at hand, Hong Kong-based insurance firm AIA Group Ltd is close to acquiring Commonwealth Bank of Australia’s (CBA) insurance business, which could be valued as high as $4 billion.
Sources go on to reveal, the deal can be annouced as early as later this week.
Sources preferred the cover of anonimity since they were not authorised to publicly talks about the matter before its public announcement.
Spokesmen for CBA and AIA declined to comment.
Last month, CBA had said it was in talks to sell its life insurance business, however it did not disclose any potential buyer. It introduced an element of uncertainty in its statement when it said the outcome of on-going negotiations were uncertain.
According to analysts, Australia is a prime market for foreign insurers given the size of its population and the growth rate of its economy. The Australian economy is growing faster than most developed markets.
Insurance units of domestic banks have struggled midst growing competition from large foreign insurance companies; new regulations which demand increased capital allocation buffers have added increased competition in the insurance sector. As a result, the sector is seeing a sell-off of such assets.
 
 
References:
http://uk.reuters.com







Science & Technology

Scientists Discover Largest Ever Under Water Volcanic Eruption Near New Zealand

Bitcoin craze increased load on the power grid to the maximum

PC And Server Performance Slows Down Due To Security Patches For Chip Flaws, Says Microsoft

Cybersecurity Firm Claims Cryptocurrency Monero Might Be Getting Funneled To North Korea University

The Way We Travel Will Be Changed by The Colorless, Odorless Gas - Hydrogen

EU's Big Change In Data Protection Rules Makes Businesses To Get Ready For It

Artificial Intelligence Helps NASA Find An 8th Planet In Orbit Of A Distant Star

Australian Research Success Could Mean Shatterproof Cell Phones Could Soon Be A Realityv

Top ten hi-tech events of the year

Tesla Considering Designing And Developing AI Chips On Its Own To Support Its Auto-Pilot Project

World Politics

World & Politics

Failure Of Last Ditch Effort To Secure Funding Results In A Partial Shutdown Of US Government

About 700,000 U.S. Twitter Users Reacted To Kremlin-Linked Trolls, Says Twitter, To Inform Users Directly

2017 Was Second Warmest Year Since Records Were Kept And It Had No El Nino Effect

France and Germany want to reform the eurozone

Take and go away: new approach to refugees in Europe

Both The Korean Countries Will Come Together In Olympic Talks

Parties of Germany agreed on the migrants problem

Munich Re: Natural disasters caused record damage in 2017