AIA International, a subsidiary of AIA Group, has wrapped up the acquisition of Commonwealth Bank of Australia’s (CBA’s) life insurance business known as Sovereign Assurance in New Zealand.

The acquisition is part of a deal announced in September last year, pursuant to which AIA will also buy CommInsure in Australia from CBA.

Under the terms of the agreement, AIA will pay A$3.8bn ($3.03bn) for the two businesses.

Furthermore, AIA has signed a 20-year strategic bancassurance pact with CBA in Australia and ASB Bank (ASB) in New Zealand to market life insurance products to customers in both countries.

AIA Group regional chief executive Bill Lisle said: “We are delighted to have completed our acquisition of Sovereign, which is set to significantly transform and expand our presence in New Zealand. We expect it will deliver a highly positive outcome for our customers, partners and advisers here, as well as our fantastic team of employees.

“This deal represents only the beginning of our long-term vision in New Zealand. We are committed to helping as many people as possible to live healthier, longer, better lives, through our market-leading programmes such as AIA Vitality and our Rehabilitation and Return to Work programme.”

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Until a long-term brand strategy is revealed, AIA New Zealand and Sovereign will continue to operate under their respective brands and continue to sell their respective products in the future.