Westpac Sells Lenders Mortgage Insurance Unit to Arch Capital
By Alice Uribe
SYDNEY--Westpac Banking Corp. will sell its lenders mortgage
insurance unit to Arch Capital Group, and has made plans for a
long-term supply partnership with it.
The Australian bank on Thursday said the sale of Westpac Lenders
Mortgage Insurance Ltd. would be at book value, which will be
determined at completion. It added the transaction includes small,
fixed annual payments to Westpac over the next 10 years.
"The sale continues the simplification of our business and
builds on our progress in becoming a simpler, stronger bank
focussed on consumer, business and institutional banking," said
Jason Yetton. Westpac's chief executive of Specialist Businesses
and Group Strategy.
As part of a 10-year exclusive supply agreement, Arch will
provide lenders mortgage insurance to Westpac, the lender said.
Westpac said it will record a loss on sale in the 2021 fiscal
year from separation and transaction costs along with a 84 million
Australian dollars (US$65.68 million) write-down of goodwill that
was announced with its first-quarter update.
Completion of the transaction is subject to various regulatory
approvals and is expected to occur by the end of August.
Write to Alice Uribe at firstname.lastname@example.org
(END) Dow Jones Newswires
March 17, 2021 20:39 ET (00:39 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.