Westpac Banking: 08/01/2022 Westpac completes the sale of its life insurance business to TAL

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August 1, 2022

Westpac Banking Corporation (Westpac) has completed the previously announced sale of Westpac Life Insurance Services Limited to TAL Dai-ichi Life Australia Pty Limited (“TAL”). The transaction was first announced on August 9, 2021 and the terms of the sale remain unchanged.

Westpac expects to report a total after-tax loss on the sale of approximately $1.37 billion1 of which $0.27 billion was committed to the Group’s fiscal 2021 results. In the group’s 2022 fiscal year results, a loss of approximately $1.10 billion1 after-tax will be classified as a notable item and relates primarily to the difference between the sale proceeds of $900 million and the book value of the company’s net assets. Closing of the transaction adds approximately 17 basis points1 to Westpac’s Common Equity Tier 1 capital ratio2.

In addition, Westpac will receive ongoing payments under an exclusive 20-year strategic alliance for the supply of life insurance products to Westpac’s Australian customers.

Westpac Specialist Businesses Managing Director Jason Yetton said, “This sale is another important step in simplifying our business. We have now completed the exit from Westpac’s insurance underwriting following the sale of our general insurance and lenders’ mortgage insurance business in Australia, as well as Life Insurance in New Zealand.

“Life insurance is an important product for many of our customers and I am delighted that we are continuing to support them by partnering with TAL, a leading life insurer that already provides life insurance to over 4, 5 million Australians.”

Media Contact:

[email protected]

1Financial impact is subject to finalization of completion adjustments and severance costs
2 On a pro forma basis as of March 31, 2022

Disclaimer

Westpac Banking Corporation published this content on August 01, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on August 02, 2022 02:19:04 UTC.

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