National Australia Bank will sell Legal & General's life insurance products through its UK banking subsidiaries and abandon its own range.
The bancassurance agreement is the latest for L&G while for NAB it is a realisation that it might do better to sell an established player's products rather than try to manufacture its own.
The move comes just 10 days after John Stewart, the former Barclays deputy chief executive who was instrumental in the deal with L&G in 2001, joined NAB as chief executive of its European operations.
NAB head of communications Tim Pie says negotiations have been going on for several months and has no connection to Stewart's arrival.
Stewart was chief executive of the Woolwich until its acquisition by Barclays in 2000 and then assumed responsibility for the personal financial services division, the Woolwich and Barclays Private Clients until he retired in April.
NAB-owned banks York-shire, Clydesdale and Northern will sell L&G life insurance as a standalone product and as part of its mortgage and critical-illness protection range later this year.
Pie does not rule out a move towards a multi-tied proposition for the group following depolarisation at the end of the year, saying the company is still deciding what its strategy will be.
He says: “The deal involves our wealth management business which does not report to John Stewart although we obviously work closely together. He was not involved in the deal.”