Necromancy is magic that affects life and life force. Death Armor saps that from a creature who impacts it, thereby sapping a bit of life, which is registered as damage. This is its primary mode of operation. NWN doesn't have a "death" damage type, so we use "magic" in this case. It's not really "negative" energy as such.
The AC increase is a secondary effect.
I'm pretty sure that description is stock NWN, and sadly, there's no stock D&D spell by that name which I can reference. By convention, however, when something describes a "death" effect, whether instant death or a gradual damage to one's life force, that falls under Necromancy.