As it seeks to focus on core business in Australia and New Zealand, the National Australia Bank has finalised the sale of 80 percent of its MLC life insurance subsidiary to Nippon Life Insurance for $2.4 billion.
National Australia Bank (NAB) will retain a 20 percent interest in the the new MLC Life Insurance business, worth around $600 million, as well as full ownership of the existing investments business, which includes superannuation, platforms, advice and asset management.
NAB will continue to use the MLC brand in providing super, investments, advice and life insurance, and will continue to distribute MLC Life Insurance products through its network. The MLC Life Insurance business will have a 10-year license agreement to use the MLC brand for life insurance.
Former Australian Ambassador to Japan
NAB also has a 20-year distribution agreement with Nippon Life to provide life insurance products through NAB’s owned and aligned distribution networks.
As part of the Nippon Life deal, Peter Grey, a former Australian Ambassador to Japan and European Union, and CEO of Austrade, has been appointed independent chairman of MLC Life Insurance. He’s joined by independent non-executive director (NED) Andy Cornish, and NEDs, Hiroyuki Nishi and Toshihiro Nakashima.
A Simpler Clearer Wealth Model
Current independent NED and audit committee chair Sandra Birkensleigh, remains on the board, along with CEO David Hackett as executive director, with Andrew Hagger also staying on, but as a NED. Outgoing MLC chairman Peeyush Gupta remains a NED at NAB, and for a number of NAB Group companies.
NAB CEO Andrew Thorburn (pictured) said the completion of the deal marked the end of the bank’s major divestments as it seeks to focus on core business in the Australian and New Zealand markets.
«From today we move forward with a simpler, clearer wealth model,» he said.
