NAB buys arm of Aviva

The National Australia Bank (NAB) has acquired Aviva Australia Holdings' wealth management business for A$825 million ($1.1 billion).

NAB said the purchase includes Aviva's life insurance operations and investment platform, called Navigator.

NAB said the acquisition was expected to be earnings per share (EPS) and return on equity accretive in the first full year following acquisition, excluding integration costs.

Prior to completion of the transaction, Aviva Australia Holdings will pay a A$40 million dividend.

NAB chief executive Cameron Clyne said the acquisition would enhance the bank's offering in key wealth management segments, including insurance and investment platforms.

"The acquisition meets the objectives outlined in the NAB Strategy earlier this year," Clyne said.

"Our MLC and NAB wealth management business is a key area of growth for us and we are well positioned to respond to changes currently taking place in the wealth management market as a result of the financial crisis and regulatory reviews," he said.

Aviva chief executive Allan Griffiths said becoming part of the NAB Wealth Australia business provided certainty for Aviva's customers and advisers, and continued support for its insurance business and the Navigator investment platform.

The acquisition is subject to approval of the Australian Competition and Consumer Commission (ACCC).

- AAP