Dai-ichi cements position as Australia’s top insurer with Westpac acquisition

With Westpac Banking Corp's exit from life Insurance, Dai-ichi is now the top dog.

Japan-based firm, Dai-ichi Life Holdings, cemented its position as the largest insurer in Australia after the recent acquisition of its wholly-owned subsidiary TAL Dai-ichi Life Australia of Westpac Banking Corporation’s life insurance business, according to a report by GlobalData.

The analyst firm said that the agreement will allow TAL to strengthen its position as the largest life insurer in Australia.

GlobalData reveals that the Australian life insurance industry was valued at AU$34.8b (US$24.1b) in 2020, in terms of gross written premium. The market remains dominated by the top five insurers accounting for 68.8% share in 2020, in terms of net written premium.

TAL Dai-ichi Life Australia was the largest insurer with a share of 22.8% in 2020, whilst Westpac Life Insurance ranked sixth with a share of 8.1%. Following the acquisition, TAL Dai-ichi is expected to hold a combined market share of 30.9%.

According to GlobalData Analyst Manisha Varma, the acquisition of Westpac Life Insurance by TAL Dai-ichi Life, which is expected to be completed in 2022, will further strengthen Dai-ichi’s position in the Australian insurance industry. 

“In 2019, TAL Dai-ichi completed the acquisition of leading financial services conglomerate Suncorp’s life insurance business, which allowed the insurer to attain a top position in the Australian life insurance industry in 2020. The deal will allow TAL Dai-ichi Life to gain around one-third share of Australia’s growing life insurance industry at a time when Japan's domestic market is struggling with a declining population,” Varma added.