Is Westpac’s (ASX:WBC) life insurance approaching its sell-by date?

Rumours that Westpac is putting its life insurance business under the hammer are swirling.
The post Is Westpac’s (ASX:WBC) life insurance approaching its sell-by date? appeared first on The Motley Fool Australia. –

Westpac Banking Corp (ASX: WBC) is reportedly gearing up to receive final bids to sell off its life insurance business. So far, media reports haven’t affected the Westpac share price.

The bank’s share price closed at $26.62 today ­– 1.26% higher than its previous close.

Let’s look at the rumours of Westpac’s latest divestment.

Life insurance under the hammer?

According to reporting by The Australian, parties interested in purchasing Westpac’s life insurance business will need to get their bids in by 25 June.

Unnamed sources told the publication the board will make a final decision on where to send the business once bidding has closed.

The purported trading of its life insurance business follows Westpac’s sale of its general insurance business to Allianz for $725 million late last year.

­Dai-ichi‘s TAL and Resolution Life are said to be interested in acquiring the life insurance business.

The Australian said Westpac was asked to comment on the sale but declined.

Westpac is the last of the big four banks to sell out of life insurance.

Commonwealth Bank of Australia (ASX: CBA) was the first of the big banks to sell its life insurance business in 2017.

National Australia Bank Ltd (ASX: NAB) followed suit, selling its Australian life insurance business in 2018 and its New Zealand counterpart last year.

In 2019, Australia and New Zealand Banking Group (ASX: ANZ) sold its life insurance business.

Westpac share price snapshot

It’s been a stunning year for the Westpac share price on the ASX.

Shares in the bank are currently 37% higher than at the start of 2021 and have gained 52% since this time last year.

Westpac has a market capitalisation of around $96.4 billion and a price-to-earnings (P/E) ratio of around 22.4. It has approximately 3.6 billion shares outstanding.

The post Is Westpac’s (ASX:WBC) life insurance approaching its sell-by date? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

ASX 200 Weekly Wrap: ASX edges even higher, led by tech rebound

Why Westpac (ASX:WBC) and this ASX 200 share are smashing the market in 2021
2 blue chip ASX shares that could be buys in June

What happened with the CBA (ASX:CBA) share price this week?
Hot ASX sector with ‘easily’ 10% to 15% upside in coming months: analyst

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!