Westpac sells lenders mortgage insurance business
Westpac has sold its lenders mortgage insurance business in a deal which will deliver the buyer, Arch Capital, a 10-year exclusive supply agreement.
The big banking group has announced to the Australian Securities Exchange (ASX) that the sale was at book value which would be determined at the completion of the transaction but that it would involve small, fixed annual payments to Westpac over the next 10 years.
The announcement said Westpac would record a loss on sale in the current financial year from separation and transaction costs along with a $84 million write down in goodwill that was announced in its first quarter update.
The company said the sale continued the simplification of the business.
The announcement said that Westpac would retain responsibility for certain legacy matters and provide protection for Arch through a combination of customary warranties and indemnities.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
