Ngai Tahu buys stake in insurance sector 08 Jul 2021 09:03 AM Photo: Getty Images.
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The departure of banks from the life insurance sector has provided an opportunity for Ngāi Tahu Holdings, which is part of a $400 million deal for local insurer Fidelity Life to buy Westpac’s New Zealand life insurance business.
Holdings is putting in $140 million for a 24.9 percent stake in Fidelity, with Fidelity’s largest shareholder, the NZ Super Fund, co-funding the acquisition.
Chief executive Mike Pohio says the investment will provide attractive benefits to both sides as well as further diversifying and increasing the growth profile of Holdings’ portfolio.
Wednesday, 7 July 2021, 4:03 pm
Bell Gully is pleased to have advised Fidelity Life, New
Zealand s largest locally owned life insurer, on its
agreement to acquire Westpac Group s New Zealand life
insurance business and its associated equity funding
arrangements.
In connection with the acquisition,
Fidelity Life will enter into a 15-year strategic
alliance with Westpac NZ and will be the exclusive
distributor of life insurance to Westpac s retail customers.
The transaction involves equity funding arrangements with
Fidelity Life s largest shareholder the NZ Super Fund and
new investor Ngāi Tahu Holdings.
The agreement is
subject to regulator and Fidelity Life shareholder
approvals, and is expected to be completed by the end of
Business Scoop » Bell Gully Advises Fidelity Life On Acquisition Of Westpac Life-NZ-Limited scoop.co.nz - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from scoop.co.nz Daily Mail and Mail on Sunday newspapers.
Photo: RNZ / Nate McKinnon
As part of the deal, Westpac would refer any potential life insurance customers to the company for the next 15 years.
Fidelity Life s largest shareholder, the NZ Super Fund and new investor Ngāi Tahu Holdings would fund the acquisition.
Westpac acting chief executive Simon Power said Fidelity Life were leaders in the industry. In talking to Fidelity Life we were extremely impressed with their single-minded focus on their customers, he said. Westpac Life customers do not need to take any action. Nothing changes with their policies and we know they ll be in great hands with Fidelity Life.