NAB is selling its New Zealand life insurance business, BNZ Life, for $NZ290 million ($269 million), with the transaction set to close later this year pending approvals from regulatory authorities.

Under the deal reached with Partners Life of New Zealand, BNZ Life will also enter into an exclusive 10-year agreement to refer its customers with life insurance needs to the new owner.

NAB says the sale is consistent with its previously stated goal of divesting non-core assets to free up resources for its main banking business. Last August the bank announced its wealth arm, MLC Wealth, would be sold for $1.44 billion to IOOF Holdings.

“Ensuring BNZ customers continue to access insurance remains important to us,” BNZ CEO Angela Mentis said.

“We’re confident that this sale will provide the best outcome for our insurance customers and that they will continue to receive a high standard of customer service from a New Zealand insurance provider with a strong local reputation.”