Financial services giant Westpac has agreed to sell its Australian life insurance division to Tal Dai-ichi Life Australia.

The deal will also see the two firms enter into a 20-year strategic alliance for the provision of life products to Westpac’s Australian clients.

Tal will acquire Westpac Life Insurance Services for A$900m (£483m, $660m, €560m).

Westpac’s group chief executive for 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.”

The sale is subject to various regulatory approval and is expected to be complete in the second half of 2022.

NAB

In other news, National Australia Bank (NAB) has agreed to purchase Citigroup’s Australian consumer business.

This includes the firm’s private wealth management, home portfolio, unsecured lending, and retail deposit arms.

The M&A deal is structured primarily as an asset and liability transfer, with NAB paying cash for the net assets of Citigroup’s consumer business plus a premium of A$250m.

NAB will also acquire all of the technology systems and platforms used by the businesses and will enter into a transitional services agreement with Citigroup to integrate the divisions into the bank.

This is expected to be in place for around two and a half years.

Additionally, senior management and approximately 800 employees will join NAB.

Ross McEwan, NAB chief executive, said: “The proposed acquisition of the Citigroup consumer business brings scale and deep expertise in unsecured lending, particularly credit cards, which continue to be an important way for customers to make payments and manage their cashflows.

“The cards and payments sector is rapidly evolving and access to a greater share of payments and transaction data will help drive product and service innovation across our personal banking business and deliver market leading customer experiences.

“Citigroup’s management team has also built strong white label partnerships with household names in the airline, retail and financial services sectors over many years. This expertise, together with our commitment to deliver market leading products and services, provides an opportunity to grow with existing partners and add new partners.”

The deal is subject to regulatory approval and completion is expected by March 2022.