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The big four bank has finalised its deal with a global specialist insurer for its lender’s mortgage insurance business.
Westpac Group has confirmed that it has completed the sale of Westpac Lenders Mortgage Insurance Ltd (WLMI) to Arch Capital Group (Arch) and entered into an exclusive 10-year supply agreement with Arch for it to provide the group with LMI.
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The bank first announced its intention to sell WLMI to Arch last March.
As previously reported, the sale was at book value – approximately $350 million – including a pre-completion dividend of $52 million, subject to completion adjustments.
The group has stated that this sale has added seven basis points to Westpac’s common equity tier 1 capital ratio.
Jason Yetton, Westpac’s chief executive, specialist businesses and group strategy, said noted that Arch was a global insurance group with an expansive local market expertise.
Speaking following the completion of sale, Mr Yetton said: “This transaction further simplifies Westpac Group’s business portfolio and enables us to help more customers into home ownership, with LMI to be seamlessly integrated into our digital customer journey with a partner that has a longstanding relationship with Westpac.”
The confirmation of the sale comes less than one month after Westpac also successfully sold its Vendor Finance business to the Australian non-bank lender, Angle Finance.
In June, the group confirmed its intention to sell its motor vehicle dealer finance and novated leasing businesses to Angle Finance.
[related: Westpac wraps up asset finance business sale]
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