NAB has entered into a non-binding memorandum of understanding (MoU) with Japanese insurer Nippon Life, with the prospect of entering a product manufacturing partnership.
Announcing the MoU on the ASX yesterday, the bank said it is in ongoing conversations with Nippon Life.
NAB said the non-binding MoU was entered into with the view of entering a long-term risk product manufacturing deal with the Japanese insurer.
However, the bank added that nothing had been decided and that any potential transaction is “uncertain and subject to regulatory approvals”.
Andrew Thorburn, the chief executive of NAB Group, said the bank had been evaluating a number of options to improve returns in its 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.
“We are committed to providing banking and wealth solutions for our customers, and Nippon Life shares our passion for the customer [...] We are pleased to pursue how a partnership could enhance the experience for our customers.”