Allianz to buy Westpac’s general insurance business for A$725m

Global insurer Allianz has agreed to buy the general insurance business of Australian banking group Westpac in a transaction valued at A$725 million ($538 million).

The deal is a part of the German company's strategy to grow its consumer insurance portfolio in Australia through a general insurance distribution arrangement with Westpac.

Under the new 20-year 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.

The agreement builds upon the existing relationship between Allianz and Westpac, which has been in place since 2015.

Following regulatory approvals and consultation with key stakeholders, the transaction is expected to complete in mid-2021.

Oliver Bäte, CEO of Allianz SE, said: “We are delighted to further strengthen our position in the Australian retail market and happy to expand our relationship with Westpac.”

Richard Feledy, Allianz Australia managing director, added: “Westpac has been a long-term business partner for Allianz and we are very pleased to enter into this new agreement. 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.”