At present, there are two insurance companies for sale. Both OnePath and Sovereign Life are on the market. They are owned by Australian banks (ANZ and Commonwealth Bank of Australia respectively).
It isn’t surprising the banking organisations are selling these assets as insurers don’t have the return on capital, like other parts of the banking businesses (lending for example).
Banks are in the transaction business while insurance companies are in the relationship business. Insurers rely on good relationships; products that meet the clients needs both today and in the future. Banks specialise in transactions like lending, overdrafts and mortgages (one-off transactions).
With the potential sale of these insurance companies, we don’t know who will end up owning them, or what the outcome will be. What this will mean for their existing clients is yet to unfold.
If you want to talk over the impact of your insurer being sold, give us a call as we love to catch up for a chat.
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