CBA intends to follow an alternative path for divestment of its Australian life insurance business, CommInsure Life, to AIA Group Limited, and will receive A$150 million less than originally agreed. This is a workaround forced on it by regulatory delays in offloading its 37.5 per cent equity interest in China's BoCommLife Insurance Company Limited (which has been a condition precedent for the CommInsure Life sale).  That transaction - first announced in May 2018 - remains subject to regulatory approval from the China Banking and Insurance Regulatory Commission. "The planned divestment has been subject to ongoing regulatory approval processes, which has led to an extended period of uncertainty for CommInsure Life," the bank conceded in a statement on Friday.The revised transaction path (subject to a number of Australian regulatory approvals) proposes: a joint co-operation agreement; changes to reinsurance arrangements; partnership milestone payments; and a statutory asset transfer.The joint co-operation agreement, expected before the end of 1H FY20, will result in the full economic interests associated with CommInsure Life (excluding CBA's equity interest in BoCommLife Insurance Company Limited) being transferred to AIA.The joint co-operation agreement will trigger an upfront payment of A$500 million to CBA, with Damien Mu, AIA Australia & New Zealand chief executive officer, to lead CommInsure Life.CBA said it expects "aggregate proceeds" of the transaction will be $2.375 billion, a reduction of $150 million from the original sale price, with payments implemented in a staged manner throughout the 2019/20 FY as follows:•    $750 million in proceeds and distributions by the end of 1H FY20;•    CBA will receive four partnership milestone payments of $50 million each ($200 million in aggregate), to reflect the progress in the partnership, with the first payment expected to be received in late 1H FY20;•    $1.425 billion by the end of FY20, either through a share sale or statutory asset transfer (subject to completion adjustments); and•     if implemented, the statutory asset transfer would be expected to take approximately nine months to implement.CBA said Colonial Mutual Life Assurance Society Limited, the key life insurance entity of CommInsure Life, "intends to enter into a reinsurance arrangement with a leading global reinsurer". CBA expects to receive a distribution from CMLA of approximately $200 million.CBA and ASB have also agreed to grant AIA an option to extend the respective Australian and New Zealand distribution agreements from 20 years to 25 years.The revised transaction path is expected to release approximately $1.6 billion to $1.8 billion of Common Equity Tier 1 capital, increasing to the Group's CET1 ratio by between 35 and 40 basis points.JP Morgan industry analysts Andrew Triggs, Nicholas Dalton suggested that even if the BoComm sale does not complete until the second half of 2020, it will have a limited effect on CBA's share price."The only implication for our forecasts is a $500 million reduction in the quantum of our assumed buybacks (to $3 billion) and pushing out the timing slightly ($2 billion in 2H20, $1 billion in 1H21), with immaterial EPS changes," they wrote in a note