Westpac seals NZ life arm disposal
7 March 2022
Westpac has accomplished the sale of its New Zealand life enterprise for $NZ400 million ($372 million) to Constancy Life Assurance Firm.
The sale, introduced in July final yr, is a part of the Australian lender’s efforts to simplify its enterprise mannequin, a course of that has led to the disposal of non-banking belongings that aren’t core to its operations.
“This transaction is an extra step within the simplification of our enterprise,” Westpac New Zealand CEO Catherine McGrath mentioned.
“The sale of the New Zealand life insurance coverage enterprise to Constancy Life ensures that our clients shall be effectively supported by a neighborhood specialist.”
As a part of the sale phrases, Westpac New Zealand will obtain ongoing funds below a 15-year distribution settlement with Constancy.
Westpac expects to e book a post-tax achieve of $NZ98 million ($91 million) from the sale, topic to the finalization of completion changes and separation prices.