National Australia Bank has reportedly struck a multi-billion dollar deal to sell a stake in its underperforming life insurance business.
The bank's shares have been halted from trade pending an announcement of a material transaction, NAB said on Tuesday.
Nippon Life, a Japanese company with operations across Asia, the US and Europe, is reportedly set to buy about 80 per cent of NAB's life insurance business for Y220 billion ($A2.51 billion).
NAB struck a memorandum of understanding with Nippon Life earlier this month with a view to entering "a long term partnership".
It said at the time it was looking to improve returns from its wealth management business, and discussions about a transaction were continuing.
Insurance helped lift cash earnings from the NAB Wealth unit by 13 per cent in the 2013/14 year, but the bank said returns were "below acceptable levels".
NAB expects to make its announcement on Wednesday, along with its 2014/15 financial results.
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