But if the JV doesn't want it, the business can be sold on the open market reports The Australian Financial Review.

National's life business generated $13 million profit in 2002 and is expected to fetch $100 million plus.

The bank is expected to issue an information memorandum soon and make a decision before June.

ING Australia chief executive Paul Bedbrook told the AFR that it is certainly a business worth looking at. The JV has already signalled an interest in expanding in New Zealand following its recent purchase of insurer Club Life.

ING Australia, which has more than $38 billion in assets under management and 2,000 staff and is two years old, reported its net profit for the year to December 31, 2003 was up 50% to $A215.4 million. And it is anticipating even stronger results this financial year.

The company said on Monday the turnaround was based on a rebound in investment earnings and a stronger life insurance result.

Bedbrook said the result was ahead of targets made during the joint venture with ANZ in 2002.

"Given that investment markets and investor sentiment are recovering we are now well positioned for future growth," he said. "We're confident of a more favourable environment for investment returns... the bear market we've been through is over and we're now in a more stable environment."

He said ING Australia's total expenses fell 12.5% to $394.5 million over the period. Cost synergies gained in the joint venture had assisted cost cutting.

"The big part is done but it's an ongoing efficiency process, we have long term projects on product rationalisation and IT platforms," he said.

"Our improved financial management means that any business growth should directly improve the bottom line. Our challenge now is to continue to drive efficiencies throughout the company and work closely with our major distribution partners to grow the business."

But broker Goldman Sachs JB Were said the ANZ had quarantined itself from the rebound in investment returns through its decision to hedge a portion of its capital invested in the joint venture, the AFR reported.

ING Australia is owned 51% by ING and 49% by ANZ. The joint venture makes about a third of its profit from life risk products sold on the open market, more than half from funds management and about 10% from general insurance and life risk products sold through the ANZ network.