Westpac completes sale of New Zealand life insurance business
28 February 2022
Westpac today announced that it has completed the sale of Westpac Life-NZ- Limited to Fidelity Life Assurance Company Limited (Fidelity Life) for NZ$400 million (approximately A$382 million1). The transaction was first announced on 6 July 2021 and the terms of the sale remain unchanged.
Westpac expects to report a post-tax gain on sale of NZ$98 million (approximately A$93 million1), subject to the finalisation of completion adjustments and separation costs. The gain on sale will be included in Westpac’s First Half 2022 results. The sale adds approximately 8 basis points to Westpac’s common equity tier 1 capital ratio2.
In addition, Westpac New Zealand will receive ongoing payments under a 15-year distribution agreement3.
Westpac New Zealand Chief Executive Catherine McGrath said “this transaction is a further step in the simplification of our business. The sale of the New Zealand life insurance business to Fidelity Life ensures that our customers will be well supported by a local specialist.”
1Translated using a NZD/AUD exchange rate of 0.954. The sale price excludes ongoing payments.
2On a pro forma 31 December 2021 basis for Level 2.
3Following the sale, Westpac Life-NZ- Limited will be renamed Fidelity Insurance Limited and will enter into a 15-year life insurance distribution arrangement with Westpac New Zealand.