Westpac has announced an exclusive 20-year agreement to distribute a range of Allianz’s general insurance products including home and contents, expanding on an existing partnership since 2015

Westpac chief executive Peter King said the transaction was another step towards his goal to simplify the bank, while continuing to help customers with general insurance needs. The $725m sale price, a multiple of 1.3 times last financial year’s gross written premium for the business, is estimated to result in a small post-tax gain in the current financial year and add almost 12 basis points to Westpac’s common equity Tier 1 capital ratio.

“General insurance is important for many Australians and we are pleased to be entering a long-term partnership with a global insurance expert to continue to help our customers protect the things they value,” Mr King said.

Source: Westpac