Following on from the purchase of Westpac Life (NZ) by Fidelity Life in July, insurance firm TAL is to acquire Westpac’s Australian life insurance arm in a deal that includes an exclusive 20-year strategic alliance.
A release from TAL confirms the insurer signed a binding share sale agreement to acquire the business for AU$900 million plus adjusted net worth on completion.
TAL says the strategic alliance will extend its expertise and capabilities in Australia to provide high-quality life insurance solutions to Westpac’s existing life insurance customers and partners, while also offering life insurance solutions to the bank’s Australian customers.
TAL Group CEO and Managing Director, Brett Clark, says the acquisition confirms TAL’s and owner, Dai-ichi Life’s strong commitment to the Australian life insurance market and community.
“The Australian life insurance market is a key component of Dai-ichi Life’s global strategy, and this acquisition will enable TAL to extend our life insurance experience and capabilities to Westpac’s customers now and into the future,” says Clark.
The announcement brings to an end the majority ownership of life insurance companies by Australia’s major banks, where most recently, Commonwealth Bank sold its CommInsure life insurance business to AIA Group, while NAB divested majority ownership of its life insurance arm to Nippon Life, and ANZ sold OnePath to Zurich.
Completion of the transaction is subject to regulatory approvals and other conditions.