The National Australia Bank (NAB) has bought Aviva Australia’s wealth management business, including its life insurance operations and investment platform, Navigator, for $825 million.

NAB is believed to have been one of five bidders for the business, which was put on the market by its British parent company. The sale is expected to be finalised in late August.

NAB CEO Cameron Clyne says the acquisition will enhance his company’s offering in key wealth management segments including life insurance and investment platforms, adding scale, efficiency and new capabilities to its operations.

“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.

Before the deal is completed Aviva will pay a $40 million dividend.

Aviva says the sale to NAB supports its strategy of focusing on the key growth markets in Asia, where leading market positions can be achieved. Staff at the company have reportedly been told to “keep their heads up” with increased opportunities likely as a result of the sale.