Westpac sells Australian life insurance business to TAL

Westpac is selling Westpac Life Insurance Services to TAL and entering an exclusive 20-year strategic alliance for the provision of life insurance products to Westpac’s Australian customers.

The deal is valued at $660 million.

The transaction sees Westpac exit manufacturing life insurance products and releases significant capital back to the bank. The total accounting loss on sale is approximately $1.3 billion post-tax.

TAL is a fully owned subsidiary of the Dai-ichi Life Group which is one of the world’s leading life insurers.

“This transaction is another step in simplifying the bank while continuing to help customers with their life insurance needs by partnering with TAL. Life insurance is an important product for many Australians and this sale provides certainty for customers and new opportunities for our people with TAL. TAL already offers insurance products to more than 4.5 million Australians and is well placed to help Westpac’s customers protect the people they love .” – Westpac Group Chief Executive Specialist Businesses & Group Strategy, Jason Yetton.

Completion of the transaction is subject to various regulatory approvals and is expected to occur in the second half of the 2022 calendar year.