Commonwealth Bank of Australia (CBA) today announced that the final regulatory approval for the divestment of CBA’s 80 per cent equity interest in its Indonesian life insurance business (PT Commonwealth Life, or PTCL) to PT FWD Life Indonesia has been received. The transaction is expected to complete in June 2020.
On completion, CBA’s Indonesian banking business, PT Bank Commonwealth (PTBC), will enter into a 15-year distribution partnership with the FWD Group for the provision of life insurance products. PTCL customers will retain all of the current benefits of their existing policies and the partnership with FWD will allow PTBC’s banking customers to retain access to high quality life insurance products.
Completion of the divestment is expected to result in a pro forma uplift to CBA’s CET1 (Level 2) capital ratio of 7 basis points, based on CBA’s risk weighted assets as at 31 December 2019.