Australia's Westpac Banking Corporation has confirmed it is to sell its general insurance division to Germany's Allianz in a transaction worth US$535m.
Allianz has secured a 20-year exclusive access agreement to Westpac clients as part of the deal, which will boost the German multinational's footprint in Australia. Allianz is already one of the five largest insurers in the country, according to Reuters.
Allianz initially signed a bancassurance deal with Westpac in 2015.
Allianz is a proven bancassurance partner, both globally and locally, and we are committed to further investing in this channel."
Commenting on today's sale, Richard Feledy, managing director of Allianz Australia, said: "Westpac has been a long-term business partner for Allianz and we are very pleased to enter into this new agreement."
"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."
Goldman Sachs described the sale as being "entirely consistent with Westpac's strategy of reviewing and now exiting non-core activities."