Westpac sells Australian Life Insurance Business to TAL

ASX

Release

9 August 2021


WESTPAC SELLS AUSTRALIAN LIFE INSURANCE BUSINESS TO TAL

Westpac today announced it has agreed with TAL Dai-ichi Life Australia Pty Limited (“TAL”) to sell
Westpac Life Insurance Services Limited and enter an exclusive 20-year strategic alliance for the
provision of life insurance products to Westpac’s Australian customers.

The sale price of $900m represents a multiple of 0.96x FY20 embedded value
1
. In addition, the
transaction includes ongoing payments to Westpac.
2


The transaction sees Westpac exit manufacturing life insurance products and releases significant
capital back to the bank. The total accounting loss on sale is approximately $1.3 billion post-tax, while
the transaction will add approximately 12 bps to Westpac’s Level 2 common equity Tier 1 capital ratio.
A post-tax loss of c.$0.3 billion, reflecting predominantly transaction and separation costs, is expected
to be realised in the Group’s FY21 results, while the balance of the loss will be recognised on
completion of the sale.

TAL is a fully owned subsidiary of the Dai-ichi Life Group which is one of the world’s leading life
insurers.

Westpac Group Chief Executive Specialist Businesses & Group Strategy, Jason Yetton, said: “This
transaction is another step in simplifying the bank while continuing to help customers with their life
insurance needs by partnering with TAL.

“Life insurance is an important product for many Australians and this sale provides certainty for
customers and new opportunities for our people with TAL.

“TAL already offers insurance products to more than 4.5 million Australians and is well placed to help
Westpac’s customers protect the people they love”.

Westpac will retain responsibility for certain pre-completion matters and provide protection to TAL
through a combination of provisions, warranties and indemnities.

Completion of the transaction is subject to various regulatory approvals and is expected to occur in
the second half of the 2022 calendar year.



1
Excluding franking credits.
2
The sale price excludes ongoing payments.
Level 18, 275 Kent Street
Sydney, NSW, 2000

Progress on Westpac’s Portfolio Simplification Strategy

This sale follows other significant steps the Group has made over the past 12 months to simplify its
business portfolio, including announcements on the sale of its Lenders Mortgage Insurance, Westpac
Pacific, Auto Finance and New Zealand Life Insurance businesses along with the recently completed
separation of its General Insurance and Vendor Finance businesses.








For further information:

Lisa Parrett Andrew Bowden
Media Relations Investor Relations
M. 0432 933 796 M. 0438 284 863
P. +612 8253 4008
ENDS


About Westpac Life Insurance

Westpac operates a life insurance business in Australia through Westpac Life Insurance Services
Limited (WLIS). WLIS manufactures term life, TPD and income protection products which are
provided under the Westpac, BT and St. George brands. In 1H21 WLIS reported retail life insurance
in-force premiums of $938m.

About TAL

TAL is one of Australia's leading life insurance specialists. For 150 years, TAL has been protecting
people, not things. Today, TAL insures more than 4.5 million Australians and offers life insurance
through the following channels: direct to consumer; through a financial adviser; and via group and
workplace superannuation schemes. TAL is part of the Dai-ichi Life Group, one of the
world’s largest insurance groups.


This document has been authorised for release by Tim Hartin, General Manager & Company
Secretary.