Suncorp completes sale of Australian wealth business

Suncorp Group (Suncorp or Group) has finalised the sale of its Australian wealth business, Suncorp Portfolio Services Limited (SPSL), to LGIAsuper.

LGIAsuper is a Queensland-based superannuation fund providing investment, advice, and insurance since 1965. Meanwhile, Suncorp’s SPSL is licensed by the Australian Prudential Regulation Authority (APRA) to act as a superannuation trustee and offer a MySuper product. It is also responsible for operating funds under its trusteeship, including ensuring that the funds comply with relevant legislation.

Suncorp estimates the deal’s total consideration to hit $55 million in cash, with the impact of the transaction on the Group’s profit expected to be broadly neutral.

Steve Johnston, Suncorp Group CEO, said completing the unit’s sale was a crucial strategic milestone because it enables the Group to focus more on its core businesses – banking and insurance – and improve the way it delivers for its customers.

“I’m pleased that our wealth business is in good shape as we hand over to LGIAsuper. We have simplified the business to improve its overall performance, resolved historic remediation matters, and we are delivering healthy investment returns to members,” Johnston continued.

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Suncorp announced SPSL’s sale to LGIAsuper in April 2021 after a strategic review that examined various options and the potential impact on its superannuation members and the Group’s people and shareholders.

In a previous statement, Johnston said he wanted Suncorp’s people to focus on improving the way the Group delivers for its insurance and banking customers.

As part of the deal, Suncorp’s 130,000 superannuation members will join LGIAsuper, a larger and more sustainable super fund that manages around $31 billion in retirement savings for its members.