Westpac NZ life arm sold for $374 million

Last week, Westpac announced its New Zealand life business would be sold for NZ$400 million ($374 million) to Fidelity Life Insurance.

The announcement follows the completion of this month’s sale of Australia’s general insurance arm to Allianz for $725 million. Since last May, the lender has conducted a strategic review of its non-banking activities.

The bank said it expected to gain after-tax profit from the sale of Westpac Life NZ, which had an effective annual premium of NZD149 million ($139 million) on March 31.

Westpac will distribute life insurance products to its customers as part of a 15-year exclusivity agreement with Fidelity. In return, Westpac will receive ongoing payments for the distribution arrangement as part of the terms of the purchase agreement.

Chief executive Peter King said the sale was part of the bank’s ongoing program to simplify its business portfolio.

“This transaction is the latest step in simplifying our business while continuing to help customers with their life insurance needs,” said King.

“Life insurance products are important to many New Zealanders and we are delighted to have a long-term partnership with a life insurance specialist to continue helping our customers protect themselves and their loved ones. their loved ones.”

Westpac said the acquisition is expected to close by the end of the year, subject to regulatory approvals.