Nib Holdings announced today it will acquire Kiwi Insurance, a life and living insurance provider, for $43 million.

The acquisition via the Australian company’s New Zealand subsidiary, Nib NZ Holdings, is subject to receipt of regulatory approvals and is targeted for completion early next year.

As part of the transaction terms, Nib NZ will also enter an exclusive relationship with Kiwibank, which will see the lender refer its retail customers to Nib for their life and living insurance needs. Kiwibank and Kiwi Insurance are subsidiaries of Kiwi Group Holdings.

Nib MD Mark Fitzgibbon says the investment is aligned with the business’ “personalisation” strategy and will allow its New Zealand arm to provide health insurance members and Kiwibank customers with a more comprehensive suite of products.

“In New Zealand, living, life and health insurance are complementary products so often purchased as a package,” he said.

“We’re responding to this preference with what should be a more integrated and seamless experience for members and customers. And it means more people will benefit from the investment we’re making in more personalised health risk assessment and management.”

He says the business has been actively exploring opportunities for some time and is confident a more comprehensive and integrated offering will enhance market penetration in both health and life products and lift revenues.

The local living insurance market is twice the size of the health insurance market and has delivered consistent growth over the last decade, he said.