Westpac has completed the sale of Westpac Life Insurance Services Limited to TAL, with the terms of sale remaining unchanged from the initial announcement 12 months ago.
Westpac expected to report a total after tax loss on sale of approximately $1.37 billion of which $0.27 billion was incurred in the group’s 2021 financial year results.
In the group’s 2022 financial year results, a loss of approximately $1.10 billion after tax would be classified as a notable item and would primarily relate to the difference between the sale proceeds of $900 million and the carrying value of net assets in the business.
In addition, Westpac would receive ongoing payments under an exclusive 20-year strategic alliance for the provision of life insurance products to Westpac’s Australian customers.
Westpac specialist businesses chief executive, Jason Yetton, said: “This sale is another important step in simplifying our business. We have now completed Westpac’s exit of insurance underwriting following the sales of our General Insurance and Lenders Mortgage Insurance businesses in Australia, as well as Life Insurance in New Zealand.
“Life insurance is an important product for many of our customers and I am pleased that we will continue to support them by partnering with TAL, a leading life insurer that already provides life insurance to more than 4.5 million Australians.”
TAL Group CEO and managing director, Brett Clark, said: “The completion of the Westpac Life business acquisition, alongside the strategic alliance with Westpac, is another significant step towards TAL’s goal of protecting more Australians in more ways, throughout their lives.
“TAL and Westpac share a strong belief in the role and value of life insurance in the community. We are looking forward to working with Westpac through our partnership to provide Westpac customers with access to high-quality life insurance solutions that meet their diverse needs throughout different stages of their lives.”
