The purchase is subject to regulatory approvals and is set for completion in early 2022.

Kiwi Insurance and KiwiBank are wholly-owned subsidiaries of Kiwi Group Holdings and under the transaction, nib will acquire Kiwi Insurance and will also enter an exclusive relationship with Kiwibank which will see the bank refer its retail customers to nib for their life and health insurance offerings.

nib chief executive Rob Hennin says there's a strong alignment between the values and mission of the companies, making the acquisition and new partnership a great fit.

“We’re all about supporting our members' better health and we’re looking forward to providing them access to a suite of health, life and living insurance covers,” Hennin says.

Kiwibank chief executive Steve Jurkovich says he's excited about the deal which delivers on Kiwibank’s growth strategy by simplifying its business, building the bank’s partnership capabilities, and providing great outcomes for customers.

“Life insurance plays a vital role in providing financial security from the unexpected, and I’m delighted that Kiwibank and nib are entering into a long-term partnership that will support Kiwis to be better off,” he says.

Kiwi Insurance policyholders don’t need to do anything and will see no change to their current policies as a result of the sale.

Customers will receive further information ahead of the completion of the sale to nib in early 2022.