Allianz has wrapped up the purchase of the general insurance business of Australian banking group Westpac in a deal valued at $534m (A$725m).
Concurrently, the German insurer inked a 20-year exclusive agreement for the distribution of general insurance products to Westpac customers.
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As per the agreement, Allianz will issue and service a range of personal insurance products, including home and contents, under Westpac Group’s brands.
The Australian lender expects to receive an additional payment of $18.71m ($25m) this calendar year if integration milestones are met.
Furthermore, it will also be entitled to contingent payments over the next five years and ongoing payments under the distribution agreement.
Allianz Australia managing director Richard Feledy said: “Today marks an important step in our strategy to grow our partnerships and consumer insurance portfolio in Australia. Not only does this see Allianz become Australia’s third-largest insurer, it also represents a significant growth in our talented team.”
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By GlobalDataWestpac Group chief executive specialist of businesses & group strategy Jason Yetton said: “We have successfully executed a transition that helps our customers protect the things they value through a long-term partnership with a global insurance expert and helps us become a simpler bank.”
