Sept 21 (Reuters) - Australia’s biggest lender Commonwealth Bank of Australia said on Thursday it would sell its life insurance unit to China’s AIA Group Ltd for A$3.8 billion ($3.05 billion).
Under the terms of the sale agreement, CBA would continue to sell life insurance in Australia and New Zealand for world No. 2 life insurer AIA for 20 years, and customers would keep their existing benefits, CBA said.
CBA had said it planned to sell its life insurance unit, CommInsure, after a scandal in which it was accused of using outdated medical definitions to justify withholding payments to policyholders.
$1 = 1.2452 Australian dollars Reporting by Sandhya Sampath in Bengaluru; Editing by Byron Kaye and Chris Reese