BNZ has sold its New Zealand life insurance business to the local insurer Partners Life for $290 million.
The deal is subject to approval by the Overseas Investment Office and the Reserve Bank.
BNZ Life is owned by BNZ’s Australian parent company National Australia Bank (NAB).
In a statement to the Australian stock exchange, NAB said the sale was in line with its strategy to focus on its core banking businesses across Australia and New Zealand.
BNZ chief executive Angela Mentis was confident BNZ Life customers would not be adversely affected.
“Ensuring BNZ customers continue to access insurance remains important to us. We’re confident that this sale will provide the best outcome for our insurance customers and that they will continue to receive a high standard of customer service from a New Zealand insurance provider with a strong local reputation.”
If the sale is approved Partners Life will take on 13 percent of New Zealand’s life insurance market share.
The deal also includes a 10-year referral scheme where BNZ will send interested customers to Partners Life, if they inquire about life insurance policies.