The owner of Kiwibank has become the latest financial services provider to sell off its insurance business.
Photo: Supplied / Kiwibank
State-owned Kiwi Group Holdings, which owns the likes of Kiwibank, Kiwi Wealth, and Kiwi Insurance, said it was selling the insurance operation to the Australian insurance provider nib Holdings for $45 million.
Kiwibank chief executive Steve Jurkovich said the sale would simplify its business but ensure it had a partnership in the sector.
The two companies have agreed on an exclusive partnership which would see Kiwibank refer its customers to nib for their insurance needs on a commission basis.
Jurkovich said Kiwi Insurance policyholders would not need to do anything and would see no change to their current policies as a result of the sale.
They would receive further information ahead of the completion of the sale to nib in early 2022.
In the past 12 months, Westpac and the BNZ have sold their life insurance businesses for similar reasons.