National Australia Bank has completed the sale of 80 per cent of its life insurance business to Nippon Life, and expects a loss of between $1.2 billion and $1.3 billion on the deal.
The bank, which announced the $2.4 billion sale last year as part of its continued divestment of non-core assets, said on Monday final financial details of the sale will be included in its full-year results due on October 27.
"This is a significant and important transaction, marking the end of the group's major divestments - enabling us to totally focus on our core business in Australia and New Zealand," NAB chief executive Andrew Thorburn said in a statement.
NAB retains a 20 per cent stake in the life insurance business and has agreed to what it called a "long-term" partnership with Japan's Nippon Life that includes a 20-year distribution deal.
The lender has also merged five superannuation funds into what it said has become Australia's largest retail super fund.
"This simplifies our superannuation business, which NAB will retain, and over time makes it easier for customers to access various products and features within the fund," Mr Thorburn said, adding that NAB will spend an extra $300 million on super, advice and asset management over the next four years.
At 1500 AEDT, NAB shares were up 24 cents, or 0.86 per cent, at $28.11. Its big four rivals had all gained between 1.5 and 2.0 per cent in a positive market.
