Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Merger or Acquisition (September 2017)
8 slides from Commonwealth Bank Of Australia's merger presentation, Sep 21, 2017
Slide 1: Divestment of Australian and New Zealand life insurance businesses
For personal use only Divestment of Australian and New Zealand life insurance businesses 21 September 2017 ‹#›
Slide 2: Disclaimer
Disclaimer For personal use only The material in this presentation is general background information about the Group and its activities current as at the date of the presentation, 21 September 2017. It is information given in summary form and does not purport to be complete. It is not intended to be
Slide 3: Overview
Overview For personal use only • Agreement to sell 100% of CBA’s life insurance businesses1 in Australia (“CommInsure Life”) and New Zealand (“Sovereign”) to AIA Group Limited (“AIA”) for $3.8 billion • 20-year partnership with AIA optimises complementary strengths for improved customer outcomes • C
Slide 4: Optimising outcomes for CBA and our customers
Optimising outcomes for CBA and our customers • Evolving dynamics in the life insurance industry For personal use only − Global players with economies of scale − Sophisticated offerings requiring specialised technology, investment and risk management − Changing global regulatory landscape • Provisio
Slide 5: AIA an ideal strategic partner
AIA an ideal strategic partner • The world’s second largest life insurer by market capitalisation For personal use only − Total sum assured of over US$1 trillion − Over 30 million individual policies and 16 million group scheme members − Extensive bancassurance experience – over 60 partnerships • Lo
Slide 6: Transaction metrics
Transaction metrics For personal use only • Sale price of $3.8 billion Transaction multiples • P/E multiple of 16.9x1 • Pre-completion dividend also expected Price / Earnings1 16.9x to be received by CBA2 Price / NTA1 1.7x • Financial impacts include goodwill reduction of ~$1.4 billion3 and are net
Slide 7: Pro forma profit reconciliation
Pro forma profit reconciliation CommInsure • Pro forma FY17 Cash For personal use only Life Sovereign Total (A$m) (NZ$m) (A$m1) (A$m) NPAT of $224m for entities to be divested FY17 Cash NPAT 2022 102 96 298 - General Insurance (retained) (62) - - (62) • General Insurance retained ($62m in Cash - Sta
Slide 8: Regulatory approvals and conditions
Regulatory approvals and conditions • Proposed transaction subject to regulatory approvals in Australia and New Zealand, For personal use only including: − Australia: Federal Treasurer (under the Financial Sector (Shareholdings) Act), Foreign Investment Review Board, Australian Prudential Regulation
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