Westpac has followed through on its intention to sell its insurance business to Allianz for $725 million and will enter into an exclusive 20-year agreement for the distribution of general insurance products to Westpac’s customers.
It announced last December it would sell Westpac General Insurance and Westpac General Insurance Services to Allianz.
A further payment of $25 million was expected to be received by Westpac this calendar year subject to integration milestones, with contingent payments over the next five years in addition to ongoing payments under the distribution agreement.
Westpac expected to report a gain on sale of approximately $61 million, subject to the finalisation of completion adjustments and separation costs, which would be included in Westpac’s full year 2021 results.
Jason Yetton, Westpac group chief executive specialist businesses and group strategy, said: “We have successfully executed a transition that helps our customers protect the things they value through a long-term partnership with a global insurance expert and helps us become a simpler bank”.