Australia’s Westpac sells general insurance arm to Allianz for $535 million

German insurer Allianz announced it has agreed to purchase the general insurance business of Westpac for AUD$725 million and enter into a new 20-year exclusive distribution deal.

For Allianz this deal represents growing its portfolio in Australia and building on its existing relationship with Westpac, which dates back to 2015. Under the new distribution agreement, along with the existing products of motor, caravan and trailer and travel insurance, Allianz will issue and service a range of personal insurance products, including home and contents, under Westpac Group’s brands.

“We are delighted to further strengthen our position in the Australian retail market and happy to expand our relationship with Westpac.” – Allianz SE CEO Oliver Bäte.

“Westpac has been a long-term business partner for Allianz and we are very pleased to enter into this new agreement. Both companies share aligned values, particularly in relation to a customer-first approach to design and distribution, and using innovation and technology as key enablers to delivering customer satisfaction, so we see this as a fantastic opportunity. Allianz is a proven bancassurance partner, both globally and locally, and we are committed to further investing in this channel. By combining our insurance and digital expertise we are able to provide valuable protection to Westpac’s customers.” – Allianz Australia Managing Director, Richard Feledy.

Allianz will welcome Westpac’s general insurance employees after the transaction has been finalized.