National Australia Bank has purchased Aviva’ Australian wealth advisory and life insurance units for A$825 million ($662 million). Aviva said that the sale will increase its capital surplus by 14% to £3.2 billion ($5.3 billion), reported Bloomberg.
The bank will get Aviva Australia’s Norwich Union Life and Navigator businesses, as well as stakes in four independent financial advisory firms, it said in a statement.
Aviva is cutting products and jobs to improve earnings at its general insurance unit, as the UK economy slows. The firm posted a 2008 loss of £915 million ($1.5 billion), as it wrote down the value of corporate bond holdings.
Cameron Clyne, CEO, National Australia Bank, said: “This acquisition will enhance our offering in key wealth management segments including insurance and investment platforms, adding scale, efficiency and new capabilities to our operations.
