Westpac Life Insurance performance unaffected by change of ownership: analyst

The insurer's performance continues to be driven by its stand-alone credit profile.

Westpac Life Insurance Services Ltd. (WLIS) will maintain its robust creditworthiness even as it changes ownership from Westpac Banking Corporation (WBC) to TAL Dai-ichi Life, a subsidiary of Japanese firm Dai-ichi Life Holdings, according to the ratings firm, S&P Global.

S&P said that Westpac Life Insurance is supported by its sound market position as the sixth-largest life insurer in Australia with strong operating performance relative to peers over the past five years.

“Under its new ownership, WLIS will maintain its bank distribution channel through an exclusive 20-year strategic alliance for providing life insurance products to WBC customers, Australia's second-largest retail bank. The ratings on WLIS are also supported by the insurer's capitalization levels, which we assess to be in the highest category under our assessment framework,” S&P said.

S&P observed that WLIS’ new parent will unlikely have an impact on its rating as it is at a commensurate level. However, the ratings firm noted the complementary nature of the WLIS and TAL Dai-ichi Life businesses, with the former being focused on bank direct and independent financial advisors, and the latter on group business.