BRIEF-Insurance Australia Group Announces Sale Of Operations In Thailand, Indonesia And Vietnam

Reuters
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June 19 (Reuters) - Insurance Australia Group Ltd:

* SALE OF OPERATIONS IN THAILAND, INDONESIA AND VIETNAM

* DEAL AT SALE PRICE OF ABOUT $525 MILLION

* AFTER-TAX PROFIT OF AT LEAST $200 MILLION IS EXPECTED TO BE IDENTIFIED IN IAG'S FY19 RESULTS FROM COMBINED DEALS

* ENTERED INTO A SALE AGREEMENT WITH TOKIO MARINE & NICHIDO FIRE INSURANCE CO FOR IAG'S OPERATIONS IN THAILAND AND INDONESIA

* SEPARATE TO TRANSACTIONS WITH TOKIO MARINE, IAG TO SELL ITS 73.07% INTEREST IN AAA ASSURANCE CORPORATION, BASED IN VIETNAM

* BASED ON CAPITAL POSITION AT 31 DEC 2017, DEALS ARE EXPECTED TO ADD AT LEAST 13 BASIS POINTS TO IAG'S CET1 RATIO

* ALL TRANSACTIONS ARE EXPECTED TO CONCLUDE IN FINANCIAL YEAR ENDED 30 JUNE 2019

* IAG'S INTERESTS IN MALAYSIA AND INDIA WILL CONTINUE TO BE TREATED AS ASSOCIATES

* APPROXIMATELY 50 BASIS POINTS ENHANCEMENT TO REPORTED INSURANCE MARGIN IN FY18 AFTER DEALS

* COMBINED PROFIT FROM SALE OF THAILAND, INDONESIA AND VIETNAM WILL BE TREATED AS AN 'UNUSUAL ITEM' IN IAG'S FY19 RESULTS

* COMBINED PROFIT FROM SALE OF THAILAND, INDONESIA, VIETNAM WILL BE EXCLUDED FROM CASH EARNINGS FOR DIVIDEND CALCULATIONS Source text for Eikon: Further company coverage:

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