Suncorp aims to be a dedicated insurer as soon as this month, following the last approval for the sale of its banking arm.
Late in June Federal Treasurer Jim Chalmers approved the sale of Suncorp’s banking business to ANZ for a reported figure of $4.9 billion.
The sale has been a long time coming, initially announced in July 2022, but the Australian Competition and Consumer Commission then moved to block the deal last August.
The Australian Competition Tribunal’s decision in February however gave the acquisition the green light, leaving only the conditions of required by Queensland legislative amendments and the Federal governments approval to move ahead.
Dr Chalmers says the decision was made after “careful consideration” into the impact the acquisition would have.
“I also took into account the unique features of this proposal, including the fact that Suncorp is one of the few remaining combined bank and insurance companies in Australia,” Dr Chalmers says.
“The proposal will allow Suncorp to focus on its insurance businesses at a time when the sector faces a range of specific challenges, including access and affordability.”
Suncorp Group CEO Steve Johnston says approval now frees the company up to pursue its plans of becoming a dedicated trans-Tasman insurer.
“Following completion, Suncorp will focus on meeting the evolving needs of insurance customers and addressing increasingly complex challenges such as climate change and affordability,” Mr Johnston said.
“This decision also brings us another step closer to the delivery of the jobs and investment package Suncorp agreed with the Queensland government as part of the sale process, with benefits not only for Queensland but across Australia and New Zealand more broadly.”
Some of the conditions the federal Government has stipulated include no changes to the number of Suncorp bank branches in Queensland and no net job losses for three years because of the transaction at Suncorp bank and ANZ.
“The conditions I have imposed are legally binding and ensure Australians continue to have access to vital banking services, employees aren’t left behind, and Queensland and Australia benefit from the transaction.”