The Commonwealth Bank is selling its general insurance business to the Hollard Group for an upfront payment of $625 million.
The bank on Monday said it will sell CommInsure General Insurance and have a 15-year deal for Hollard to distribute home and vehicle insurance products to Commonwealth retail customers.
Hollard may make deferred payments to the bank, depending on business performance, and will invest in the business during the 15-year deal.
The bank will continue to receive income from the distribution of insurance products.
The sale is expected to be completed mid-2022.
Shares were lower by 3.61 per cent to $99.95 at 1056 AEST amid a wider market downturn.
