Nippon Life has moved a step closer to entering the Australian life insurance market by signing a memorandum of understanding with NAB.

The agreement covers life insurance product manufacturing, but the bank says nothing is finalised at this stage.

NAB Group CEO Andrew Thorburn says the bank has been considering a number of options for its MLC life business.

“We have been exploring a potential partnership with NAB Wealth insurance manufacturing business through the formation of a strategic partnership with major global insurance company Nippon Life,” he said.

“We are committed to providing banking and wealth solutions for our customers, and Nippon Life shares our passion for the customer, and we are pleased to pursue how a partnership could enhance the experience for our customers.”

Nippon Life’s recent annual report includes a comment by President Yoshinobu Tsutsui that the company is looking to expand to new countries, “including taking majority stakes”.

Apart from building its asset management business – last week Nippon Life increased its stake in an Indian fund manager to 49% – the insurer wants to enhance its relationships with advisers.

“To ensure customers receive optimal insurance coverage, we will also improve our consulting abilities a step further,” Mr Tsutsui says.

“In insurance agencies, financial institutions and other such channels, we will take steps to increase our market share.

“We have entered the independent agency retail market to address the needs of customers that we have not been able to reach easily with our conventional sales and service channels.”

Nippon Life says strengthening its life business drives international alliances.

“We are building a global network aiming at implementing initiatives in these insurance markets and improving investment returns, and also at gaining access to advanced expertise in the fields of asset management and insurance,” the annual report says.

Nippon Life has alliances with AIA in Asia and Allianz in Europe.