National Australia Bank (NAB) will acquire Aviva Australia Holdings' wealth management business for $825 million.
The deal includes Aviva's life insurance operations and Navigator investment platform.
"Aviva will further develop our retail life insurance business and the Navigator investment platform will enhance our scale in this market," NAB group executive wealth Australia Steve Tucker said.
"Aviva will deliver important service and technology capabilities which we can utilise across our broader business for the benefit of financial advisers and their clients," he said.
"Aviva has strong relationships with and understanding of the external financial adviser (EFA) market and we are committed to continue to support EFA advisers with quality insurance and investment products."
The acquisition is expected to contribute to NAB's profit in the first full year following the acquisition, the bank said. Earlier media reports also identified AMP as a potential bidder, but the company has never confirmed it was in the race for Aviva.
"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," National Australia Bank group chief executive officer Cameron Clyne said.
