National Australia Bank (NAB) has made a key move in the life insurance space, announcing today that it has moved towards a life insurance product manufacturing agreement with Japan’s Nippon Life Insurance Company, aimed at bolstering NAB’s wealth business.
The big banking group announced to the Australian Securities Exchange (ASX) this morning that it had entered into a non-binding Memorandum of Understanding (MOU) with Nippon Life, “with a view to entering a long-term partnership in life insurance product manufacturing”.
The announcement said discussions between NAB and Nippon Life were ongoing, that nothing had been decided, and any potential future transaction was uncertain and subject to regulatory approvals.
Commenting on the moves, NAB Group chief executive, Andrew Thorburn said NAB had been evaluating a number of options to improve returns in the wealth business.
“We have been exploring a potential partnership with the NAB Wealth insurance manufacturing business through the formation of a strategic partnership with major global insurance company Nippon Life,” Mr Thorburn said.
