The National Australia Bank Ltd (ASX: NAB) share price was a positive performer on Wednesday.
The banking giant's shares rose 1% to end the day at $23.61.
Why did the NAB share price push higher?
The big four banks were all on form on Wednesday and helped drive the S&P/ASX 200 Index (ASX: XJO) higher.
This appears to have been down to improving investor sentiment following news that another COVID-19 vaccine was likely to be given emergency use approval in the United States this week.
In addition to this, an announcement out of NAB appears to have also given its shares a boost this afternoon.
What did NAB announce?
NAB has announced that it has entered into an agreement to sell its New Zealand life insurance business, BNZ Life, to leading New Zealand life insurance provider Partners Life.
According to the release, the two companies have agreed a fee of NZ$290 million for the business.
Management notes that the asset sale is consistent with its strategy to focus on its core banking businesses across Australia and New Zealand.
BNZ's CEO, Angela Mentis, commented: "Ensuring BNZ customers continue to access insurance remains important to us. 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."
What now?
NAB has advised that it expects the sale to complete in late 2021. Though, it remains subject to regulatory and other approvals.
Upon completion, the sale of BNZ Life is expected to result in an increase in NAB's Common Equity Tier 1 (CET1) ratio by 6 basis points. This is based on the bank's risk weighted assets as of 30 September 2020.
As part of the sale, BNZ will also enter into an exclusive 10-year agreement for the referral of BNZ's customers with life insurance needs to Partners Life. This remains subject to Partners Life continuing to meet agreed operating standards.
