Global insurer Allianz has reached an agreement to acquire the general insurance (GI) business of Australian bank and financial services provider, Westpac, for AUD 725 million (approx. USD 535 million).
As part of the arrangement, Allianz and Westpac have entered into a new 20-year exclusive agreement for the distribution of general insurance solutions to Westpac customers.
Once the AUD 725 million purchase completes, Allianz will expand its current general insurance distribution agreement with the Australian bank, enabling Westpac to offer a wide range of Allianz general insurance products to its customers.
The pair have worked together since 2015, and this latest agreement will serve to increase Allianz’s share in the Australian consumer insurance marketplace.
“We are delighted to further strengthen our position in the Australian retail market and happy to expand our relationship with Westpac,” said Oliver Bäte, Chief Executive Officer (CEO) of Allianz SE.
Under the new 20-year distribution arrangement, alongside the existing products of motor, caravan and trailer, and travel insurance, Allianz is set to issue and service a suite of personal insurance products, including home and contents, under Westpac’s brands.
Richard Feledy, Allianz Australia Managing Director, commented: “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.”
Adding: “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.”
Upon closing, Westpac’s general insurance employees will join Allianz. The pair will now go through a process of consulting with key stakeholders to obtain all relevant regulatory approvals, with the deal expected to close in the middle of next year.
