By Stuart Condie
SYDNEY--Westpac Banking Corp. agreed to sell its New Zealand insurance unit for 400 million New Zealand dollars (US$282 million) as the Australian lender continues to slim down its operations.
Australia's oldest bank on Tuesday said it agreed to sell the Westpac Life-NZ-Limited life and income insurance business to Fidelity Life Assurance Company Ltd. The sale includes an exclusive 15-year agreement for distribution of life insurance products to Westpac's New Zealand customers.
Westpac said it expects a post-tax gain on the sale and to add approximately 7 basis points to its top tier capital ratio. It will receive ongoing payments from the distribution agreement, it added.
Westpac last week completed the sale of its Australian life and general insurance operations to Allianz SE in a deal that includes a 20-year distribution agreement. Last month it decided to keep 100% ownership of its New Zealand banking unit following a review of the business.
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(END) Dow Jones Newswires
July 05, 2021 18:42 ET (22:42 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.