Westpac has completed the sale of its New Zealand life business for $NZ400 million ($372 million) to Fidelity Life Assurance Company.

The sale, announced in July last year, is part of the Australian lender’s efforts to simplify its business model, a process that has led to the disposal of non-banking assets that are not core to its operations.

“This transaction is a further step in the simplification of our business,” Westpac New Zealand CEO Catherine McGrath said.

“The sale of the New Zealand life insurance business to Fidelity Life ensures that our customers will be well supported by a local specialist.”

As part of the sale terms, Westpac New Zealand will receive ongoing payments under a 15-year distribution agreement with Fidelity.

Westpac expects to book a post-tax gain of $NZ98 million ($91 million) from the sale, subject to the finalisation of completion adjustments and separation costs.