NAB’s Hagger emphasises life facts
National Australia Bank (NAB) has made clear to the Senate Economics Committee inquiry into Life Insurance Industry the degree to which it has actually exited the life insurance business.
In a letter to the Committee, NAB’s chief customer officer, Consumer Banking and Wealth Management, Andre Hagger made clear the bank’s willingness to appear before the inquiry but emphasised how limited its responses might ultimately prove to be and asked for the understanding and forbearance of members of the Parliamentary committee.
Referring to his appearance before the committee to give evidence, Hagger latter said: “I would very much appreciate the committee members’ understanding and forbearance regarding some constraints the separation of MLCL [MLC Life] may have in the context of NAB’s appearance and evidence”.
“For this purpose I note:
1. 80 per cent of the shareholding in MLCL is held by an unrelated Japanese mutual life insurer, Nippon Life Insurance Company. NAB is a minority (20 per cent) shareholder. NAB has no day to day management responsibility for MLCL.
2. MLCL operates as a standalone entity reporting through to its own Board, which is separate to NAB.
3. Core executive management, experts and a majority of the life insurance division employees transferred from NAB to the separated MLCL.
4. The former NAB employees who moved to MLCL have been formally separated from NAB and indeed MLCL and all employees have physically re-located to different offices.
5. MLC is a brand which attaches to a range of products and services, ownership of that brand is retained by the NAB. MLCL uses the MLC brand under license.”
“While I and other NAB executives will endeavour to respond to committee members’ questions, matters related to the operation, management and functions of MLCL may need to be taken on notice for referral to MLCL,” Hagger’s letter said.
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