Allianz today announced it 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 agreement, worth $ 725 million 1, Allianz 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. Subject to receipt of required regulatory approvals, the transaction is expected to complete in mid 2021.
This agreement represents an important step in Allianz growing its consumer insurance portfolio in Australia, building upon the existing relationship between Allianz and Westpac, which has been in place since 2015. Under the new distribution agreement, along with the existing products of motor, caravan and trailer and travel insurance, Allianz will issue and service a range of personal insurance products, including home and contents, under Westpac Group’s brands.
“We are delighted to further strengthen our position in the Australian retail market and happy to expand our relationship with Westpac,” said Oliver Bäte, 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 Allianz Australia Managing Director, Richard Feledy. “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.”
“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.”
Allianz will welcome Westpac’s general insurance employees after the transaction has been finalised. Allianz and Westpac will now go through a process of consulting with key stakeholders including employees and obtaining all relevant regulatory approvals.
1 The proposed transaction comprises a payment of AUD$ 725 million for the purchase of Westpac’s General Insurance business and a 20-year exclusive distribution agreement. Additional future payments are contemplated in the agreement but are dependent on the achievement of certain targets.