NAB in life manufacturing talks with Nippon Life
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.
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
