TAL Dai-ichi Life Australia Pty Limited’s $900 Million Acquisition of Insurance Business from Westpac

King & Wood Mallesons advised Westpac on the sale of its life insurance business to TAL Dai-ichi Life Australia Pty Limited (TAL), and the exclusive 20 year strategic alliance for the provision of life insurance products to Westpac’s Australian customers.

Westpac agreed with TAL Dai-ichi Life Australia Pty Limited to sell Westpac Life Insurance Services Limited and enter an exclusive 20-year strategic alliance for the provision of life insurance products to Westpac’s Australian customers.

The transaction sees Westpac exit manufacturing life insurance products and releases significant capital back to the bank. The total accounting loss on sale is approximately $1.3 billion post-tax, while the transaction will add approximately 12 bps to Westpac’s Level 2 common equity Tier 1 capital ratio. A post-tax loss of c.$0.3 billion, reflecting predominantly transaction and separation costs, is expected to be realised in the Group’s FY21 results, while the balance of the loss will be recognised on completion of the sale.

Completion of the transaction is subject to various regulatory approvals and is expected to occur in the second half of the 2022 calendar year.

TAL is a fully owned ubsidiary of the Dai-ichi Life Group which is one of the world’s leading life insurers.

Westpac (ASX:WBC) operates a life insurance business in Australia through Westpac Life Insurance Services Limited (WLIS).

King & Wood Mallesons M&A Partner Meredith Paynter (Picture) led the broad-ranging KWM deal team, which included Partners Jim Boynton, Nicole Heller, Sarah Yu, Wayne Leach, Peter Yeldham, Liam Burgess and Tim Bednall, and lawyers Jo Ruitenberg, Cal Maher, Charles Davies, Henry Sit, James McGrath, Sarah Mitchell, Esme Wong, Chris Kew and Georgie Parletta.

The Herbert Smith Freehills team was led by partner Nicole Pedler and is comprised of lawyers across the firm’s M&A, Financial Services and other practice groups in the firm’s Sydney office. This included corporate solicitors Hudson Archer and Raul Vellani; regulatory partner Patrick Gay, senior associates Paul Burton and Tamanna Islam, special counsel Steven Rice and solicitor Shan-Verne Liew; employment partner Michael Gonski and solicitor Lucy Halliday; IT partner Kwok Tang and solicitor Thomas Gooch; and IP special counsel Amalia Stone.

The Herbert Smith Freehills team is working closely with the TAL legal team, including TAL’s Chief General Counsel Anne Clarke, TAL’s General Manager Legal Chad Downie, and TAL’s Head of Legal – Corporate, Karen Schutte.

Involved fees earner: Hudson Archer – Herbert Smith Freehills; Paul Burton – Herbert Smith Freehills; Patrick Gay – Herbert Smith Freehills; Michael Gonski – Herbert Smith Freehills; Thomas Gooch – Herbert Smith Freehills; Tamanna Islam – Herbert Smith Freehills; Nicole Pedler – Herbert Smith Freehills; Steven Rice – Herbert Smith Freehills; Amalia Stone – Herbert Smith Freehills; Kwok Tang – Herbert Smith Freehills; Raul Vellani – Herbert Smith Freehills; Christopher Kew – King & Wood Mallesons; Tim Bednall – King & Wood Mallesons; Jim Boynton – King & Wood Mallesons; Liam Burgess – King & Wood Mallesons; Charles Davies – King & Wood Mallesons; Nicole Heller – King & Wood Mallesons; Wayne Leach – King & Wood Mallesons; Cal Maher – King & Wood Mallesons; James McGrath – King & Wood Mallesons; Sarah Mitchell – King & Wood Mallesons; Georgie Parletta – King & Wood Mallesons; Meredith Paynter – King & Wood Mallesons; Jo Ruitenberg – King & Wood Mallesons; Henry Sit – King & Wood Mallesons; Esme Wong – King & Wood Mallesons; Peter Yeldham – King & Wood Mallesons; Sarah Yu – King & Wood Mallesons;

Law Firms: Herbert Smith Freehills; King & Wood Mallesons;

Clients: TAL Dai-ichi Life Australia Pty Ltd ; Westpac Banking Corporation;

Author: Sonia Carcano