The deal also includes a home and auto insurance distribution partnership. Credit: Blake Wheeler on Unsplash.

Hollard Holdings Australia (Hollard), a unit of South African insurer Hollard Group, has completed the acquisition of the general insurance business of Commonwealth Insurance.

As per the initial announcement in June this year, Hollard acquired the unit from the Commonwealth Bank of Australia (CBA) for a cash consideration of $468m (A$625m) along with deferred payments.

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The transaction also includes an exclusive 15-year bancassurance alliance between CBA and Hollard to distribute home and motor vehicle insurance products to the bank’s retail customers in Australia.

Additionally, the acquisition of CommInsure General Insurance is anticipated to boost Hollard’s market share in Australia, bolstering its position as a leading general insurer in the country.

Hollard Insurance CEO Paul Fahey said: “We are incredibly excited to officially commence Hollard and CBA’s long-term strategic partnership, with the collective strengths of both businesses coming together to deliver great insurance products and experiences for our customers.

“I am also delighted to welcome the former CommInsure General Insurance team to our Hollard community.

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CBA CEO Matt Comyn said: “The sale completion represents an important milestone in CBA’s strategy to deliver differentiated customer propositions and the best integrated digital experiences.

“With our partner Hollard, we will bring together CBA’s number one mobile banking app and Australia’s largest branch network with Hollard’s innovative insurance products and enhanced claims technologies, to anticipate and meet the changing needs of our customers.”

The divestment of the insurance unit is expected to boost CBA’s Common Equity Tier 1 capital by approximately nine basis points.