The National Australia Bank (NAB) is forming an alliance with Axa in the UK to provide commercial insurance products and financial services to customers of its three British banks, the Clydesdale, Yorkshire and Northern.

NAB's CEO for wealth management in Europe, Garry Mulcahy, says the banks must concentrate on managing customer relations and distribution. “The agreement with Axa is another step in our aim in the UK to drive organic growth from strategic alliances in our insurance operations," Mr Mulcahy said.

The fact that the commercial insurance side will be left to the insurance experts is an interesting development, although it’s understood the NAB won’t be outsourcing its insurance business in Australia.

The three banks have already formed alliances with other UK insurance groups to provide personal lines products and as well as life insurance and income protection products.