Westpac to Sell General Insurance Unit to Allianz for A$725 Million
By Stuart Condie
SYDNEY--Westpac Banking Corp. has agreed to sell its general
insurance business to Allianz SE for 725 million Australian dollars
Australia's second-largest bank by market capitalization on
Wednesday said the sale price represents a multiple of 1.3x the
unit's fiscal 2020 gross written premium. The sale will add about
12 basis points to its common equity Tier 1 capital ratio, the
Westpac said it will enter into an exclusive 20-year agreement
to distribute Allianz products to bank customers. The transaction
includes contingent payments subject to integration milestones and
business performance over the next five years, as well as ongoing
payments relating to the distribution agreement.
Westpac has distributed Allianz products including auto and
travel insurance since 2015.
"This transaction is another step in simplifying our business,"
Westpac Chief Executive Peter King said.
Westpac earlier this year prepared the business for divestment
by separating it into a new specialist businesses division along
with its superannuation operations and wealth platforms.
Write to Stuart Condie at firstname.lastname@example.org
(END) Dow Jones Newswires
December 01, 2020 18:36 ET (23:36 GMT)
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