NAB has completed the sale of 80 per cent of its life insurance business to Japanese life insurer Nippon Life, the bank has announced.
Nippon Life bought the 80 per cent stake in the business for $2.4 billion, and has been licensed to use the MLC Life Insurance brand for 10 years, NAB said.
The bank also announced a long-term partnership with Nippon Life, including a 20 year distribution agreement with the insurer to provide products through NAB-owned and aligned networks.
“This is a significant and important transaction, marking the end of the group’s major divestments, enabling us to totally focus on our core business in Australia and New Zealand,” said NAB chief executive Andrew Thorburn.
NAB will retain a 20 per cent shareholding of the new life insurance business, and will also keep full ownership of the existing investments business, which includes superannuation, platforms, advice, and asset management.
MLC Life Insurance chief executive David Hackett added that the “new ownership structure represents a major leap forward” for the company.
“MLC Life Insurance will continue to be Australian-led and managed with over 1100 dedicated life insurance employees. We will now be able to leverage Nippon Life’s global presence,” he said.
“This, combined with our deep understanding of the Australian market, enables us to continue to provide great life insurance solutions to Australians.”
The sale has taken close to a year to complete, having been originally announced in October 2015.