Japan’s largest life insurance company, Nippon Life, has entered into a deal with National Australia Bank to buy 80% of the MLC life insurance business for $2.4 billion. NAB will retain the remaining 20% of the business.

The new partnership is expected to take effect in late 2016. Nippon Life plan to spend more than $50 million to upgrade MLC’s information technology and management systems. Nippon Life will retain the MLC brand for at least 10 years.

National Australia Bank

National Australia Bank have identified increased capital requirements as one of the reasons for the sale. The NAB deal follows the purchase of another Australian life insurer TAL by Dai-ichi Life in 2010.

MLC is currently Australia’s 4th largest life insurance company with over $1.8 billion in force premiums. To find out more about Australia’s largest insurers go to Compare Insurers.