Australian bank Westpac has agreed to sell its New Zealand life insurance business to Fidelity Life Assurance Company for NZ$400m (£205m, $283m, €239m).
The two have also entered into an exclusive 15-year agreement for the distribution of life insurance products to Westpac’s New Zealand customers.
The deal will also include ongoing payments from the distribution agreement to Westpac New Zealand.
Peter King, Westpac chief executive, said: “This transaction is the latest step in simplifying our business while continuing to help customers with their life insurance needs.
“Life insurance products are important for many New Zealanders and we are pleased to be entering a long-term partnership with a life insurance specialist to continue to help our customers protect themselves and their loved ones.”
The completion of the transaction is subject to various approvals and is expected to occur by the end of 2021.