Westpac has finalised a deal to sell its life insurance business in New Zealand for $280.84m to Fidelity Life.

Concurrently, both the firms have entered an exclusive 15-year distribution agreement, under which, Fidelity Life will offer insurance solutions to Westpac’s customers in New Zealand.

The latest deal follows the acquisition of Westpac’s general insurance business by German insurer Allianz for $534m.

Westpac’s move is aimed at shifting its focus to core banking operations and simplifying business operations.

The deal is expected to add seven basis points to Westpac’s common equity tier one capital and result in a post-tax gain on the sale.

Westpac CEO Peter King said: “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.”

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Westpac Life New Zealand had an annual in-force premium of $105.41m as of  31 March 2021.

The acquisition is subject to regulatory approval and is expected to close by the end of 2021.

Last month, Prudential Financial completed the sale of its life insurance venture, Prudential of Taiwan, to Taishin Financial.

Prior to that Principal Financial announced its plans to divest life insurance blocks with $25bn reserves and Dutch insurer NN Group made an offer to acquire part of MetLife’s life insurance businesses in Europe.