Allianz has acquired the Westpac general insurance business in a $725 million deal that includes a 20-year agreement for distribution of products to the bank’s customers.

The insurer says the transaction is an important step in building its consumer portfolio in Australia and builds on an existing relationship with Westpac, in place since 2015, that has involved distribution of products including motor, travel, caravan and trailer insurance.

Under the new distribution agreement, Allianz will also issue and service a range of personal insurance products, including home and contents, under Westpac Group’s brand.

“Both companies share aligned values, particularly in relation to a customer-first approach to design and distribution, and using innovation and technology as key enablers to delivering customer satisfaction, so we see this as a fantastic opportunity,” Allianz Australia MD Richard Feledy said.

As of September 30, Westpac had around 550,400 policies in force and gross written premium of $555 million.

“General insurance products are important for many Australians and we are pleased to be entering a long-term partnership with a global insurance expert to continue to help customers protect the things they value,” Westpac CEO Peter King said today.

Westpac says in a statement to the Australian Securities Exchange that the transaction also includes contingent payments subject to integration milestones and business performance over the next five years, as well as ongoing payments in accordance with the distribution agreement.

Completion of the deal, which is subject to regulatory approvals, is expected in the second half of next year.

As insuranceNEWS.com.au has previously reported Westpac announced a strategic review of its non-banking operations in May.