UPDATED STORY: NBNZ may sell life business

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The National Bank’s life and funds management businesses may be sold as a result of the takeover of the former Lloyd’s owned New Zealand bank by the ANZ Banking Group.

Wednesday, March 3rd 2004, 7:24AM

A potential sale of the life business was signalled in Australia with the ANZ acknowledging it may be obliged to onsell the business to its joint venture with Dutch firm ING.

NBNZ head of funds management Gareth Fleming, told Good Returns it is not clear yet what parts of the business are related to the the ANZ-ING joint venture, ING Australia, agreement.

He says the NBNZ is working through it and there is no timeline.

Kerry Wales, NBNZ’s general manager insurance, says he has nothing further to add.

But ING Australia’s chief executive Paul Bedbrook told the Australian Financial Review that NBNZ life is certainly a business worth looking at.

ING Australia recently purchased Club Life and has indicated it is interested in expanding in the New Zealand market.

National's life business generated $13 million profit in 2002 and is expected to fetch $100 million plus.

The AFR said the bank is expected to issue an information memorandum soon and make a decision before June.

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