AIA weighs selling some Australian assets to Resolution, sources say

Asian insurance giant AIA Group Ltd. is considering selling some life insurance legacy assets in Australia as part of its strategy to streamline its portfolio, according to people familiar with the matter.

Closely-held Resolution Life has emerged as the likeliest buyer for certain policies related to AIA’s acquisition of Commonwealth Bank of Australia’s life insurance business, the people said, asking not to be identified because the matter is private. A transaction could help Hong Kong-based AIA raise a few hundred million dollars, they said.

AIA has been working with a financial adviser on the disposal, which had also drawn interest from other bidders including private equity firms, the people said. Considerations are still ongoing and no final decision has been made, they said.

Representatives for AIA and Resolution Life declined to comment.

AIA bought CBA’s life insurance business in a A$3.8 billion ($2.7 billion) deal announced in 2017, marking the most ambitious foray beyond the company’s core markets in Asia at the time.

Resolution Life focuses on the acquisition and management of portfolios of life insurance policies, according to its website. Since 2003, it has invested more than $17 billion of equity in the purchase, reinsurance, consolidation and management of life insurance firms. It has operations in Bermuda, the U.K., the U.S., Australia and New Zealand.