Westpac has announced it will sell its General Insurance and General Insurance Services to Allianz for $725 million and both parties have entered into an exclusive 20-year distribution agreement which will see the general insurance products distributed to Westpac’s customers.
The transaction, which would be a subject to various regulatory approvals and expected to occur in the H2 2021, would expand the existing partnership with Allianz under which Westpac distributed a range of Allianz’s products.
The sale, which according to Westpac’s chief executive, Peter King, would represent a milestone in building simpler bank, would add around 12bps to Westpac’s common equity Tier 1 capital ratio, the bank said in the announcement made to the Australian Securities Exchange (ASX).
“General insurance products are important for many Australians and we are pleased to be entering a long-term partnership with a global insurance expert to continue to help customers protect the things they value,” King said.
“This transaction is another step in simplifying our business while continuing to help customers with their general insurance needs.”