Life insurance distributor Freedom Insurance Group is selling a stake in its issuer NobleOak Life after finalising a $7 million sale of its non-core investment in the company.
The original investment was made in conjunction with the arrangement for NobelOak to act as the insurer of all new business written by Freedom, commencing in 2013.
Freedom will continue to receive the ongoing trail revenue associated with the in force book of business as well as an administration fee for continuing to administer the book.
Freedom Insurance Group chief executive officer Keith Cohen said he was delighted with the outcome of the transaction.
"Our initial investment in NobelOak supported our ability to grow in force book rapidly and position Freedom as a leading provider of life insurance in the Australian market," Cohen said.
"Proceeds from the sale will support implementation of the company's exciting growth strategy."
Freedom will recognise a profit on sale of the NobelOak investment of approximately $3.3 million, before tax.
NobleOak is reinsured by registered life insurer Hannover Life Re of Australasia, a subsidiary of the Hannover Re Group.