Global law firm Ashurst has advised AIA Australia Limited (AIA) on the completion of a A$2.375 billion share sale and portfolio transfer between AIA and Commonwealth Bank's (CBA) life insurance businesses in Australia (CommInsure Life).
AIA and CBA completed the transfer under Part 9 of the Life Insurance Act 1995 (Cth), whereby AIA Australia has finally acquired the life insurance business of CommInsure Life.
The parties had previously established a joint cooperation agreement (JCA), pursuant to which AIA has conducted the day to day operations of CommInsure Life since 1 November 2019. AIA and CBA then proceeded to apply to the Federal Court for the transfer of the life insurance business of CommInsure Life to AIA. The parties have also completed a share sale for certain other entities within CommInsure Life to AIA.
In connection with entry into the JCA, CBA, AIA and CommInsure Life entered into a 25 year distribution agreement.
Ashurst advised AIA on all aspects of the revised transaction structure including competition law and other regulatory issues, including obtaining regulatory approval, and negotiating the revised transaction documents.
Completion of the transaction is a culmination of a four year long process.
Lead partner Con Tzerefos commented:
"It is extraordinary to think that we started work on this matter in early 2017 and after four years of hard work AIA Group have finally completed the sale. We are very proud to have assisted AIA Group on such a significant and complex transaction."
The Ashurst team was led by partner Con Tzerefos and comprised partners from a large number of practice areas, including Lisa Simmons (Corporate Transactions), Rehana Box (Insurance), Ross Zaurrini and Peter Armitage (Competition), Jane Harvey (Employment), Amanda Ludlow and Emma Butler (DET), Jason Cornwall-Jones (Property), Stuart D'Aloisio (IP), Jamie Ng and Philip Trinca (Finance), Andrew Harpur and James Clarke (Disputes).
