As one big four bank’s risk arm relaunches at the start of this month, another has completed the transfer of its life insurance business.
TAL completed its acquisition of Westpac Life and all existing life insurance business and policies will transfer to the TAL Group.
The transaction was first announced on 9 August 2021 and includes 345 Westpac Life employees.
It also marks the commencement of an exclusive 20-year strategic alliance between the two organisations that gives Westpac’s Australian customers access to TAL products.
Westpac expects to report a total after tax loss on sale of approximately $1.37 billion which includes $270,000 incurred during FY21 results.
In a media release, TAL chief executive Brett Clark said both organisations had a shared belief in the value of life insurance in the community
“We are looking forward to working with Westpac through our partnership to provide Westpac customers with access to high-quality life insurance solutions that meet their diverse needs throughout different stages of their lives.”
Jason Yetton Chief Executive Westpac’s Specialist Businesses Division said, the bank was happy it could continue to support the risk industry through the strategic partnership.
Changing hands
All four risk businesses from the big four banks have now been transferred.
Zurich officially launched Zurich Assure at the start of this month after picking up ANZ’s life insurance arm, giving the former its own personal advice capability.
Zurich chief distribution officer for life and investments Kieran Forde told Professional Planner last month the big four bank had discussions with Zurich having built a strong business relationship with the insurer after selling OnePath.
“ANZ spoke to us about its intentions [exiting the advice business], and given they were the adviser on record for a very large number of our Zurich and OnePath insurance customers, it was an important conversation,” he says. “We were interested in how those customers would be serviced going forward.”
The acquisition of CommInsure Life by AIA was finalised earlier this year after it begun a partnership in late 2019 to operate as one entity.
The deal included reinsurance arrangements as well as a strategic distribution agreement similar to TAL/Westpac, but for 25 years.
Nippon Life Japan acquired an 80 per cent stake in MLC’s life insurance business in 2016 creating a standalone business to MLC’s wealth business which was later sold to Insignia Financial.
