NAB ticks off life insurance sale

NAB’s $2.4 billion deal marks the end of its recent divestment program.

The asset sales program was designed to refocus NAB on its core Australian and New Zealand operations

National Australia Bank has finalised the $2.4 billion sale of 80 per cent of its life insurance business after almost a year of sorting through the finer details.

The transaction, first agreed with Japan’s Nippon Life in October last year, completes the bank’s divestment program.

The asset sales program was designed to refocus the group on its core Australian and New Zealand operations, with the demerger of its UK unit – Clydesdale Bank – the highlight.

Terms with Nippon Life have not seen any significant change since the deal was first announced, with NAB noting it would today begin a 20-year distribution agreement with Nippon Life in relation to its provision of life insurance products through NAB’s 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,” NAB chief executive Andrew Thorburn said.

“We have also streamlined our superannuation business, merging five super funds into one to create Australia’s largest retail super fund. This simplifies our superannuation business, which NAB will retain, and over time makes it easier for customers to access various products and features within the fund as their needs change.”

The deal sees former ambassador to Japan Peter Grey win the chairman role at MLC, to be joined by Andrew Cornish, Hiroyuki Nishi and Toshihiro Nakashima.

Sandra Birkensleigh, David Hackett and Andrew Hagger will continue as directors on the board.