Japan-based Nippon Life Insurance has signed an agreement to acquire 80% stake in National Australia Bank’s (NAB) life insurance subsidiary, MLC, for around AUD2.4bn ($1.7bn).
NAB is retaining the remaining 20% stake in MLC Life. Once the deal is completed, MLC Life will become a subsidiary of Nippon Life.
NAB will also sign a distribution agreement with Nippon Life to sell insurance products through MLC Life for a period of 20 years.
Established in 1886, MLC distributes a wide range of products ranging from traditional life insurance such as term insurance to income protection insurance and group insurance.
The firm is claimed to be ranked second in retail insurance by premium in force in the Australian market.
Once the deal concludes, NAB Wealth insurance executive general manager and MLC Life executive director David Hackett will serve as CEO of MLC Life.
Subject to approval by the relevant regulatory authorities in Japan and Australia, the deal is expected to be completed by the end of this year.
Earlier this week, Nippon Life Insurance has reportedly agreed to purchase another 23% stake in India’s Reliance Life Insurance for Rs25bn ($385m).
This deal will allow the firm to increase its interest in the joint venture with Reliance Capital to 49%.
Nippon Life Insurance provides a wide range of products, including individual and group life and annuity policies. It has around 21 million policies in Japan.
Image: Headquarters of Nippon Life Insurance Company in Chuo-ku, Osaka. Photo: courtesy of 663highland.