A number of top insurers are playing down industry speculation they may have put in a bid to acquire Westpac’s life insurance businesses.
The Australian bank is seeking to sell its Australian and New Zealand life businesses and has appointed JP Morgan Chase to handle the sale, where the deadline for bids closed on 25 June.
Media reporting on both sides of the Tasman suggest a $500 million deal for the bank’s New Zealand life business may be close, with a decision expected to be announced shortly.
Hamish Anderson, spokesperson for Fidelity Life, would only say his firm keeps a close eye on market developments and is “…always open to opportunities”. A Cigna spokesperson was unable to comment “on speculation”.
While a spokesperson for HKEX (Hong Kong) listed AIA New Zealand was also not able to comment, Kris Ballantyne, Chief marketing Officer at Partners Life, says he is unaware of Westpac’s intentions, saying: “We are very busy with the purchase of BNZ Life, so we have a lot on our plate…And that’s really all we can say on rumours about Westpac Life.”
Other top NZ insurers have also been approached for comment and RiskinfoNZ will report any developments on the sale of Westpac’s NZ life insurance arm as they arise.
As for Partners Life’s $290 million bid for BNZ Life last December, Ballantyne says his firm is stepping through the procedure to obtain clearance to complete the purchase, which – he says – may stretch out to early 2022.
“We have a little way to go to submit an application to the Reserve Bank,” he says. “But it is going as well.
“It is a long process and depends on regulatory approval, both in terms of the Reserve Bank and potentially the Overseas Investment Office, as a significant minority shareholder of Partners Life is Blackstone, which is foreign capital.”
UPDATE 6 July: Fidelity Life Buys Westpac NZ Life for $400 Million