Westpac Group’s sale of its general insurance arm to Allianz will not impact the New Zealand business, and Westpac New Zealand will continue to offer insurance underwritten by IAG, a spokesperson has confirmed.
In a highly publicised deal announced last week, global insurer Allianz acquired Westpac Group’s general insurance business in Australia for AU$725 million. The transaction is subject to regulatory approval, and is expected to be completed in mid-2021.
A Westpac NZ spokesperson said the New Zealand insurance arm isn’t part of the deal, and that the bank’s New Zealand operations will be reviewed on an ongoing basis.
“That change related to our Australian parent and its general insurance business in Australia. It does not affect Westpac New Zealand,” the spokesperson told Insurance Business NZ.
“General insurance offered by Westpac New Zealand is underwritten by IAG NZ, and is distributed via our branch network.
“We regularly review all parts of our business to ensure they meet the needs of our customers and are aligned to our strategic direction. We have nothing to announce regarding the way insurance is offered.”
Westpac Group CEO Peter King said he was pleased to announced the 20-year partnership with Allianz, which involves over 550,000 policies and gross written premium of AU$555 million.
“General insurance products are important for many Australians and we are pleased to be entering a long-term partnership with a global insurance expert to continue to help customers protect the things they value,” King stated.
Commenting on the deal, Allianz Australia MD Richard Feledy said: “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.”