Insurance Australia Group (IAG) expects to realise an after-tax profit of at least $200 million from the sale of three Asian interests.
The insurer is selling its Thailand and Indonesia operations to Tokio Marine & Nichido Fire Insurance Co for around $525 million.
It is selling its Vietnam-based AAA Assurance Corporation to Tokio Marine for an undisclosed sum in a separate deal.
IAG chief executive officer Peter Harmer said Tokio Marine was part of the largest property and casualty insurance group in Japan with operations in 38 countries.
“We believe Tokio Marine is an ideal owner given its experience in the region, and that this is a good outcome for the associated employees, customers and other stakeholders,” he said in a statement on Tuesday.
The combined profit from the sales will be treated as an ‘unusual item’ in the insurer’s 2019 financial year results and identified for accounting purposes as discontinued operations in the 2018 financial year.