Allianz has agreed to purchase the general insurance business of Westpac and enter into a new 20-year exclusive agreement for the distribution of general insurance products to Westpac customers.
On completion of the proposed $725 million agreement, Allianz said it will expand its existing general insurance distribution arrangement with Westpac, which will allow Westpac to provide a wider range of Allianz general insurance products to its customers.
Allianz said the agreement represents an important step in growing its consumer insurance portfolio in Australia, building on the relationship between Allianz and Westpac which has existed since 2015. Under the new distribution agreement, Allianz will issue and service a range of personal insurance products, including home and contents, under Westpac Group brands, in addition to the existing products of caravan and trailer, motor, and travel insurance.
“We are delighted to further strengthen our position in the Australian retail market and happy to expand our relationship with Westpac,” said Oliver Baete, CEO of Allianz SE.
“Westpac has been a long-term business partner for Allianz and we are very pleased to enter into this new agreement,” said Richard Feledy, Managing Director of Allianz Australia. “Both companies share aligned values, particularly in relation to a customer-first approach to design and distribution, [along with] using innovation and technology as key enablers to delivering customer satisfaction, so we see this as a fantastic opportunity.
“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.”
Peter King, CEO of Westpac Group, said the agreement was a significant milestone in building a simpler, stronger bank.
“This transaction is another step in simplifying our business while continuing to help customers with their general insurance needs,” said King. “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.”
Subject to regulatory approvals, the transaction is expected to be completed in mid-2021.