Westpac to sell NZ life insurance business to Fidelity Life Assurance
Westpac has agreed to sell its New Zealand life insurance business – Westpac New Zealand Limited to Fidelity Life Assurance Company for NZD 400 million ($280 million).
The Australian bank and financial services provider has also forged an exclusive 15-year agreement with Fidelity Life Assurance Company for distributing life insurance products to its New Zealand customers.
The deal will also include ongoing payments from the distribution agreement to Westpac New Zealand.
Fidelity Life Assurance Company is a locally owned life insurer in New Zealand. The company is backed by the NZ Super Fund.
Peter King – CEO of Westpac said: “This transaction is the latest step in simplifying our business while continuing to help customers with their life insurance needs.
“Life insurance products are important for many New Zealanders and we are pleased to be entering a long-term partnership with a life insurance specialist to continue to help our customers protect themselves and their loved ones.”
As of 31 March 2021, Westpac New Zealand had annual inforce premiums of NZD149 million ($ 104.35 million).
The closing of the deal, which is subject to various approvals, is anticipated to be wrapped up by the end of this year.