NZ Super and Ngai Tahu Finances Fidelity Life’s Deal to Buy Westpac NZ Life Business
Posted on 07/09/2021
Westpac Bank agreed to sell its New Zealand life insurance business to Auckland-based Fidelity Life Assurance Company Limited for NZ$ 400 million. As part of the transaction, Westpac would refer any potential life insurance customers to Fidelity Lifefor the next 15 years.
Fidelity Life’s largest shareholder is the New Zealand Superannuation Fund. New Zealand Superannuation Fund would co-fund the acquisition with its new investor Ngāi Tahu Holdings. Ngāi Tahu Holdings, the investment arm of Te Rūnanga o Ngāi Tahu, will take a NZ$ 140 million, 24.9% stake in Fidelity Life, further strengthening the life insurer’s New Zealand-owned credentials. Ngāi Tahu Holdings’ investment will help fund Fidelity Life’s acquisition of Westpac Life, which was also announced today, subject to regulatory and shareholder approvals. Completion of the transaction is subject to shareholder and regulatory approvals and is expected to occur by the end of 2021.