AIA has announced that its Australian subsidiary has signed an agreement to sell its Australian Savings and Investments (S&I) business to Resolution Life Australasia.

The transaction, whose financial terms were not disclosed, is subject to regulatory approval.

AIA’sA$8bn Australian S&I business consists of a portfolio of superannuation, retirement, and investment offerings.

The portfolio was acquired by AIA Australia as part of its acquisition of The Colonial Mutual Life Assurance Society from the Commonwealth Bank of Australia (CBA).

The insurer is offloading the business to strengthen focus on its core business covering life and health insurance as well as wellbeing services.

AIA said in a statement: “Following a review of the overall portfolio in Australia, AIA concluded that the S&I business is non-core to AIA’s strategy to be the leading life, health, and wellness provider in Australia and does not meet AIA’s financial criteria.

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“This transaction demonstrates the group’s financial discipline and commitment to deliver long-term sustainable value for shareholders.”

Meanwhile, Resolution Life said that the deal will deliver significant value and scale benefits and strengthen its position in the Australian life insurance space.

AIA Australian S&I business, which is complementary to Resolution Life’s portfolio of superannuation, investment and retirement products, will be integrated into its local business operations.

As part of the transaction, approximately 62,000 AIA Australia customers will join the company’s existing 1.1 million customer base in the country.

Resolution Life Australasia CEO Megan Beer said: “This acquisition demonstrates Resolution Life’s commitment to the Australasian market and our success in growing our business here.”

“We are now very well positioned for future growth in the Australasian market and to deliver on our goal to be the leading in-force specialist life insurer in Australasia.”

Last year, Resolution Life acquired AMP’s life insurance and mature business AMP Life in 2020 to form Resolution Life Australasia (RLA).

Last year, the firm took full control of RLA after obtaining 19.13% equity interest in the firm held by AMP.