By David Winning

SYDNEY--National Australia Bank Ltd. said it has agreed to the sale of its New Zealand life insurance business, as it focuses more heavily on its core banking divisions.

NAB said it has agreed to sell BNZ Life to New Zealand life insurance provider Partners Life for 290 million New Zealand dollars (US$206.1 million), anticipating the deal will complete in late 2021. The transaction is forecast to increase NAB's CET1 ratio by six basis points.

"As part of the sale, BNZ will also enter into an exclusive 10-year agreement for the referral of BNZ's customers with life insurance needs to Partners Life, subject to Partners Life continuing to meet agreed operating standards," NAB said in a statement.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

December 15, 2020 23:18 ET (04:18 GMT)

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