Securinvest Financial Planners

National Australia Bank has agreed to purchase Aviva Australia Holdings’ wealth management business including its life insurance operations and investment platform, Navigator, for $825 million. For investors who currently utilise the Aviva Navigator platform, we expect business to continue as usual. We will keep you informed and on top of any changes that may occur as a result of this acquisition.

The following information is part of NAB's ASX announcement informing the market of the deal.

The acquisition is expected to be earnings per share and return on equity accretive in the first full year following acquisition (excluding estimated integration costs). Prior to completion Aviva Australia Holdings will pay a $40 million dividend. Based on the estimated Tier 1 equity at completion, the acquisition will result in an approximate 15 basis point decrease in Tier 1 capital on a pro forma basis1.

“This acquisition will enhance our offering in key wealth management segments including insurance and investment platforms, adding scale, efficiency and new capabilities to our operations,” National Australia Bank Group Chief Executive Officer Cameron Clyne said.

“The acquisition meets the objectives outlined in the NAB Strategy earlier this year. 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.

Aviva Australia CEO Allan Griffiths said: “At a time of industry change and challenging economic circumstances, becoming part of the NAB Wealth Australia business provides certainty for our customers and advisers, and continued support for our insurance business and the Navigator investment platform.”

NAB Group Executive Wealth Australia, Steve Tucker said: “Aviva will further develop our retail life insurance business and the Navigator investment platform will enhance our scale in this market. Aviva will deliver important service and technology capabilities which we can utilise across our broader business for the benefit of financial advisers and their clients.

“Aviva has strong relationships with and understanding of the external financial adviser (EFA) market and we are committed to continue to support EFA advisers with quality insurance and investment products.”

The acquisition is subject to regulatory approvals and confirmation from the ACCC that it has no objection, and is expected to be completed during the fourth quarter of 2009. The acquisition excludes Aviva’s asset management business and its interest in the Professional Investment Holdings business.