(Adds details, Suncorp CEO comment)
Oct 1 (Reuters) - Australia's Suncorp Ltd (SUN) said on Tuesday it will sell its vehicle repair business to smash repairer AMA Group Ltd (AMA) for A$420 million ($283.50 million), allowing the insurer to focus on its core insurance and banking operations.
The company said it would retain a 10% holding in Capital S.M.A.R.T Group, with repair businesses in Australia and New Zealand, after the sale is completed.
Suncorp said it expects an after-tax profit in the range of A$275 million to A$295 million from the sale, in addition to the value of the 10% stake it will hold.
Citing increasing complexity in the smash repair and parts procurement business, Suncorp CEO Steve Johnston said the divestment would allow the company to increase focus on its core offerings.
A 15-year strategic partnership with Capital S.M.A.R.T would also preserve Suncorp's a competitive advantage in the motor vehicle claims, the insurer said.
Suncorp also announced the sale of its auto parts supplier ACM Parts to AMA for A$20 million, it said in the statement. ($1 = 1.4815 Australian dollars)
News: SUN UPDATE 1-Australia's Suncorp to sell vehicle repair unit to AMA Group for $283 mln
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