Allianz has boosted its consumer portfolio in Australia with the $725 million acquisition of Westpac’s general insurance business.

As reported by insuranceNEWS.com.au in a Breaking News bulletin last week, the deal includes a 20-year distribution agreement that builds on an existing relationship with the bank involving sales of Allianz insurance for areas including motor and travel.

Westpac had around 550,400 policies in force as of September 30, with gross written premium totalling $555 million from products such as home and contents and landlord insurance.

“Allianz is a proven bancassurance partner, both globally and locally, and we are committed to further investing in this channel,” Allianz Australia MD Richard Feledy said. “By combining our insurance and digital expertise we are able to provide valuable protection to Westpac’s customers.”

Westpac says the sale of the business is part of building a “simpler, stronger bank,” while the agreement with Allianz recognises that general insurance products are “extremely important” for many of its customers

“We also know that customers are looking for online and digital ways to transact and this partnership will over time make it easier for customers to do this when they are considering insurance,” Westpac CEO specialist business strategy and transformation Jason Yetton said.

Westpac says the transaction 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.

General insurance employees at the bank will have pathways to join Allianz as the transition progresses, while some of the team will remain with Westpac.

Completion of the deal is expected around the middle of next calendar year, subject to regulatory approval, Allianz says.