Westfield Sells Banking Unit to Focus on Core P&C Insurance and Specialty Growth
Westfield, a prominent property and casualty (P&C) insurance group, has announced the sale of its banking arm, Westfield Bancorp, to First Financial Bancorp. This transaction aligns with Westfield's strategic focus on its core P&C insurance business by divesting non-core banking operations. First Financial will acquire 100% of Westfield Bancorp's stock for $325 million, with the payment structured as approximately 80% cash and 20% stock. Specifically, the deal involves $260 million in cash and 2.75 million shares of First Financial stock, reflecting current market values.
The acquisition is projected to be accretive to First Financial's earnings by 12%, with a tangible book value earn-back period of about 2.9 years. It is expected to finalize in the fourth quarter of 2025, pending regulatory clearance and standard closing conditions. This strategic move allows Westfield to concentrate investment and operational resources on expanding its P&C insurance portfolio, including specialty insurance lines.
Westfield has pursued growth through diversification within insurance segments, notably expanding Westfield Specialty since 2021. The specialty division operates internationally, including markets in the US, UK, and Dubai, writing several lines of specialty insurance coverages. The acquisition of Lloyd’s Syndicate 1200 has considerably enhanced Westfield's international underwriting capacity, with the syndicate estimated to generate gross written premiums of £774 million in 2025.
Westfield Specialty is also developing targeted specialty products like the Contractors Pollution and Professional Liability (CPPL) policy, designed to fill coverage gaps in traditional liability policies. This reflects broader industry trends of insurers refining focus towards areas with higher profit and growth potential.
The exit from banking operations brings Westfield in line with peers emphasizing operational concentration on insurance underwriting and performance. The company expresses confidence that this realignment positions it well for sustained profitable growth and enhanced capabilities across its insurance platforms.