Resolution Life seals $410 million deal for Asteron Life New Zealand
Resolution Life has completed its $410 million purchase of Asteron Life New Zealand from Suncorp Group Limited, marking an expansion of its operations in the local life insurance market.
The acquisition was carried out through Resolution Life Australasia, Resolution Life’s regional insurance arm.
What to expect from the life insurance business acquisition
Asteron Life will continue to operate as an independent entity under its existing brand and maintain its status as a licensed life insurer in New Zealand. The business will remain open to new policyholders.
Grant Willis (pictured right) has been named chief executive officer of Asteron Life and will report to the Asteron Life board, chaired by Simon Tyler.
Tim Tez, CEO of Resolution Life Australasia, stated that the acquisition underscores the company’s strategy for growth in New Zealand.
“While Asteron Life and Resolution Life will continue to operate under separate brands in New Zealand, both businesses will benefit from the combined scale, capabilities, and broader reach in the local market,” he said.Willis also commented on the transition, saying it aligns with Asteron Life’s future plans.
“The Asteron Life team, our market leading products, and strong adviser relationships will all be retained providing continuity to our people, customers, and advisers as we transition into one of New Zealand’s largest life insurance businesses,” he said.Asteron Life’s new credit ratings
Following the acquisition, Fitch Ratings assigned Asteron Life an Insurer Financial Strength (IFS) rating of “A” (Strong) and a Long-Term Issuer Default Rating (IDR) of “A-.” Both ratings are placed on Rating Watch Positive (RWP), indicating the possibility of an upgrade depending on future developments.
Fitch said the rating reflects Asteron Life’s capital position, earnings performance, and strategic importance within Resolution Life NOHC, its new parent company. The agency considers Asteron Life to be a key subsidiary within Resolution Life NOHC’s regional operations following the acquisition.
Market position and financial performance
Asteron Life’s integration is expected to bolster Resolution Life NOHC’s competitive position in New Zealand. When combined with Resolution Life Australasia’s existing New Zealand operations, the group is projected to become the country’s second-largest life insurer based on premium volume.
Fitch categorised Asteron Life’s business profile as moderate, citing its established presence in the market and distribution partnerships, including its relationship with the New Zealand Automobile Association.