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Westpac has completed its sales of its life insurance business to Fidelity Life. The business will be called Fidelity Insurance. The deal was funded largely by shareholders, the NZ Super Fund and Ngāi Tahu Holdings.
The NZ Super Fund is also a shareholder in Kiwi Group Holdings, which owns Kiwibank. Kiwibank recently sold its insurance arm to nib.
Ngāi Tahu Holdings has paid $140 million for a 24.9% stake in Fidelity Life which values the business at around $560 million.
Fidelity now has around 50 new staff and has added 150,000 customers to its business.
As part of the sale, Westpac has entered into a 15-year life insurance distribution arrangement with Westpac NZ. Under this arrangement, Westpac NZ will distribute Fidelity Insurance products to its retail customers for the next 15 years.
The transaction was first announced on 6 July 2021 and the terms of the sale remain unchanged.
Westpac NZ chief executive Catherine McGrath (pictured) says Westpac Life customers are in good hands.
“This transaction allows our team at Westpac NZ to simplify what we do by focussing on banking and related services, while simultaneously building a relationship with a life insurance specialist who we know will look after our customers."
She says the sale does not affect existing life insurance policies.
Fidelity Life chief executive Melissa Cantell says people are at the heart of the new alliance with Westpac NZ.
“Completing this acquisition is an important step towards our aspiration to reimagine life insurance for New Zealanders. It will allow us to leverage the investments we’re making in data and technology, dial up our strong New Zealand brand even further and ultimately help more New Zealanders get the benefits of insurance protection.”
Ngāi Tahu Holdings chief executive Craig Ellison says the investment is expected to be of mutual long-term benefit and is something to be celebrated.
"This investment by Ngāi Tahu Holdings aligns with our refreshed strategy and contributes to the diversification of our portfolio. Our focus is firmly on intergenerational growth of the pūtea for future generations of our whānau and this investment will help contribute to that success.”
Ngāi Tahu Holdings will shortly appoint one new director to Fidelity Life’s Board.
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