The sale comes after CBA's CommInsure business was last year found tohave knocked back some customer claims on the basis of outdated medical definitions,leading to multiple reviews into the business,including from regulators.
Chief executive Ian Narev has said the sale is unrelated to these problems,saying it is selling the business because CBA's"competitive advantage"is in consumer banking,not life insurance.
"There is no way that the Commonwealth Bank,in achieving everything that we want to achieve,is ever going to manufacture,and invest,and innovate in insurance products as well as AIA,"Mr Narev said.
Even so,he acknowledged the sale came after a challenging period for CommInsure and the broader industry,which has faced rising claim costs from income protection policies.