Westpac completes sale of life insurance business to TAL

ASX
Release

1 August 2022

WESTPAC COMPLETES SALE OF LIFE INSURANCE BUSINESS TO TAL
Westpac Banking Corporation (Westpac) has completed the previously announced sale of
Westpac Life Insurance Services Limited to TAL Dai-ichi Life Australia Pty Limited (“TAL”). The
transaction was first announced on 9 August 2021 and the terms of the sale remain unchanged.

Westpac expects to report a total after tax loss on sale of approximately $1.37 billion
1
of which
$0.27 billion was incurred in the Group’s Financial Year 2021 results. In the Group’s Financial
Year 2022 results, a loss of approximately $1.10 billion
1
after tax will be classified as a notable
item and primarily relates to the difference between the sale proceeds of $900 million and the
carrying value of net assets in the business. The completion of the transaction adds
approximately 17 bps
1
to Westpac’s common equity Tier 1 capital ratio
2
.

In addition, Westpac will receive ongoing payments under an exclusive 20-year strategic alliance
for the provision of life insurance products to Westpac’s Australian customers.

Westpac Specialist Businesses Chief Executive, Jason Yetton, said “This sale is another
important step in simplifying our business. We have now completed Westpac’s exit of insurance
underwriting following the sales of our General Insurance and Lenders Mortgage Insurance
businesses in Australia, as well as Life Insurance in New Zealand.

“Life insurance is an important product for many of our customers and I am pleased that we will
continue to support them by partnering with TAL, a leading life insurer that already provides life
insurance to more than 4.5 million Australians”.

For further information:
Lisa Parrett Andrew Bowden
External Relations General Manager Investor Relations
M. 0432 933 796 M. 0438 284 863

ENDS


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

1
The financial impact is subject to the finalisation of completion adjustments and separation costs
2
On a proforma 31 March 2022 basis
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