Sydney, Australia (CU)_ The sale of Westpac Banking Corporation’s (Westpac) life insurance business to TAL Dai-ichi Life Australia has been finalized. The acquisition was initially disclosed last year on August 9. Westpac stated in a press statement that it anticipates reporting a total after tax loss on the sale of around $1.37 billion.
However, according to Jason Yetton, the CEO of Westpac’s specialty businesses, the transaction represents a significant step towards streamlining their operations. He said, “We have now completed Westpac’s exit of insurance underwriting following the sales of our general insurance and lenders mortgage insurance businesses in Australia, as well as life insurance in New Zealand”.
According to a TAL media release, all of the bank’s life insurance business and current Westpac Life policies must be transferred to the TAL Group. In addition, the organization also welcomed over 300 Westpac Life staff. According to TAL Group CEO, Brett Clark, “The completion of the Westpac Life business acquisition, alongside the strategic alliance with Westpac, is another significant step towards TAL’s goal of protecting more Australians in more ways, throughout their lives”.
According to the TAL press release, the day marks the start of a unique 20-year strategic relationship between the life insurer and Westpac, enabling the bank’s Australian clients to purchase TAL’s life insurance policies. According to the media statement from Westpac, a loss of over $1 billion after tax will be classified as a notable item in the group’s 2022 financial year results, which is primarily attributable to the difference between the sale proceeds of $900 million and the carrying value of net assets in the business.