Westpac sells NZ life insurance unit to Fidelity Life

Westpac Life NZ and Fidelity Life will also enter into a 15-year distribution agreement.

Australia’s Westpac has sold its New Zealand life insurance unit to New Zealand life insurer, Fidelity Life, for $281m (NZ$400m), according to an announcement.

Fidelity life will also enter into a 15-year life insurance distribution arrangement with Westpac Life NZ.

Fidelity Life’s largest shareholder, the NZ Super Fund, and new investor, Ngai Tahu Holdings, will fund the majority of the acquisition. The sale would not affect customers’ insurance policies.

The completion of the transaction is subject to shareholder and regulatory approvals and is expected to occur by the end of 2021.