Westpac completes sale of New Zealand life insurance business
SYDNEY, AUSTRALIA: Westpac announced that it has completed the sale of Westpac Life-NZ- Limited to Fidelity Life Assurance Company Limited for NZ$400 million.
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, 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 ratio.
In addition, Westpac New Zealand will receive ongoing payments under a 15-year distribution agreement.
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.”
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