National Australia Bank in talks with Japan's Nippon for life insurance deal

[SYDNEY] National Australia Bank, the nation's No. 1 lender by assets, on Thursday said it has signed a non-binding agreement with Japan's Nippon Life Insurance Company to enter into a long-term partnership to produce life insurance products.

Discussions between NAB and Nippon Life are ongoing and any potential future transaction is uncertain and subject to regulatory approvals, NAB said in a statement to the stock exchange.

The talks come as NAB evaluates options to improve returns in the wealth business. Local media in both countries have been speculating that Nippon would buy NAB's life business in a deal that could be worth up to US$2.5 billion.

REUTERS