Westpac Banking Corp. is injecting A$60 million into its life insurance arm at a time when other Australian banks are seeking an exit from the space, The Australian Financial Review reported Dec. 5, citing an executive of Westpac's wealth management arm.
Sue Houghton, general manager of insurance at BT Financial Group Pty Ltd., said the capital injection will help the unit build a new platform to simplify insurance policy claims and administration and set up an insurance quote and advice portal for its financial planners. Houghton added that the bank does not want to be only a distributor since it sees wealth as an important part of its business.
The news came after Australia & New Zealand Banking Group Ltd. in October agreed to sell part of its wealth business. ANZ, like Suncorp Group Ltd., is seeking to find a buyer for its life division. National Australia Bank Ltd. was the first out of the blocks after it agreed to sell 80% of its life insurance division in 2015.
