Major bank Westpac (ASX:WBC)
to sell its Australian life insurance business, Westpac Life Insurance Services, to TAL Dai-ichi Life Australia (TAL) for $900 million and enter a 20-year alliance for Westpac’s Australian customers to receive life insurance products.
TAL is a fully owned subsidiary of the Dai-ichi Life Group, a global life insurer.
The transaction releases capital back to bank, and exits manufacturing life insurance products. Total accounting loss from the sale is approximately $1.3 billion post-tax although the transaction will add approximately 12 basis points to Westpac’s Level 2 common equity Tier 1 capital ratio.
Westpac chief executive Jason Yetton said, “this transaction is another step in simplifying the bank while continuing to help customers with their life
insurance needs by partnering with TAL."
Completion of the transaction is expected to occur in the second half of the 2022 calendar year.
Shares in Westpac (ASX:WBC)
are trading 1.4 per cent higher at $25.47.