Westpac Bank of Australia announced on Monday that it has agreed to sell its life insurance business from Australia to Daiichi of Japan for A $900 million (US $660 million).Insurance.
Westpac had previously agreed to sell its general insurance and New Zealand life insurance businesses. The latest deal marks the bank's complete exit from the life insurance business.
Australian banks are rapidly pulling out of the insurance business. Companies, including Macquarie Group, Suncorp Group and wealth manager AMP, have reduced their exposure to the industry over the past five years.
For Japan's Daiichi Life Insurance, the deal provides another way to boost overseas business. In 2018, the company acquired Suncorp's Australian life insurance business for A $640 million.
Westpac also said it had signed an exclusive 20-year agreement with first Life's Australian subsidiary to sell life insurance products to Westpac customers. The subsidiary provides insurance for more than 4.5 million Australians.