National Australia Bank (NAB) has reached a non-binding memorandum of understanding (MoU) with Japan-based Nippon Life Insurance Company (Nippon Life).

Discussions between NAB and Nippon Life are ongoing; although, nothing has been decided, and any potential future transaction is uncertain and subject to regulatory approvals.

NAB Group CEO Andrew Thorburn said NAB had been evaluating various options to boost returns in the wealth business.

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

"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."