- Westpac (WBC) will sell its New Zealand life insurance business to Fidelity Life for NZ$400 million (A$373 million)
- The banking giant has also entered an exclusive 15-year agreement to distribute life insurance products to its customers in New Zealand
- CEO Peter King says the sale of Westpac Life-NZ represents the latest step in a push to simplify the business
- The transaction is, however, still subject to several approvals, but the parties are expecting it to occur by the end of 2021
- WBC shares closed at $25.53 on Monday July 5, 2021
Westpac (WBC) has signed a deal to sell its New Zealand life insurance business to Fidelity Life – the largest locally owned life insurer in the country – for NZ$400 million (A$373 million).
In addition to the sale of Westpac Life-NZ, the banking giant has also entered an exclusive 15-year agreement with Fidelity Life to distribute life insurance products to its customers in New Zealand.
The parties expect the transaction to be completed before the end of the calendar year, subject to the necessary approvals.
Westpac CEO Peter King said the sale tied into the company’s push to simplify its operations.
“This transaction is the latest step in simplifying our business while continuing to help customers with their life insurance needs.”
In December 2020, Westpac also announced the sale of its general insurance arm to Allianz for $725 million and entered an exclusive 20-year distribution agreement.
WBC shares closed at $25.53 on Monday July 5, 2021.