Suncorp shareholders are set for a windfall once the company completes the sale of its Australian life insurance business for about $725 million.
Suncorp on Tuesday said it had signed a share sale deed with the local subsidiary of Dai-ichi Life Group, along with a 20-year distribution agreement to sell products provided by the Japanese firm.
The ASX-listed company expects to return approximately $600 million of the proceeds to shareholders following the sale, which is expected to complete by the end of the calendar year.
TAL Dai-ichi Life Australia insures almost four million Australians and offers life insurance direct to consumer, through advisers, and via group and workplace superannuation schemes.
Suncorp announced the sale last month, helping its shares jumped to their highest level since 2007, but had not confirmed the distribution of the proceeds.
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