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Japan’s Nippon Life has announced its decision to purchase the global life insurance company Resolution Life for approximately $8.2 billion, as revealed in a company statement on December 11.
Additionally, Nippon Life has acquired the remaining 20% of MLC Life from National Australia Bank (NAB) and plans to merge MLC with Resolution Life Australasia for A$500 million (about $319 million). Nippon Life initially purchased an 80% stake from NAB in October 2016, and the sale of the remaining 20% is anticipated to be finalized in the latter half of 2025.
Resolution Life, a life insurer headquartered in Bermuda, has assets in the US, Australia, and New Zealand. It also owns Resolution Re, which provides life reinsurance services to companies in Asia, Europe, and the US.
This acquisition represents Nippon Life’s largest international expansion effort to date, as the company seeks to diversify beyond Japan. Founded in 1889 and based in Osaka, Nippon Life, also known as Nissay, is making a significant move with this deal, expected to be completed in the second half of 2025.
Resolution Life has expanded through acquisitions, including the purchase of Suncorp’s New Zealand life insurance division, Asteron Life, earlier this year for NZ$410 million (approximately $238 million). Last year, it acquired AIA’s Australian superannuation and investment life insurance business. In July 2020, it completed a delayed deal to buy AMP Life for about A$3 billion ($1.91 billion).
The merger of Resolution Life Australasia and MLC will create Australia’s third-largest life insurer, with in-force premiums totaling A$2.714 billion as of June 2024, with MLC contributing A$1.87 billion. The new entity will be named Acenda.
TAL is currently the largest operator in Australia, with $6.4 billion in premiums, while AIA holds A$3.244 billion, and Zurich has A$2.65 billion, according to the NMG Consulting Risk Distribution Monitor.
Nippon Life has been a major investor in Resolution Life, contributing a $1 billion capital injection in January 2023, bringing its total investment to $1.65 billion. Resolution Life was founded by Sir Clive Cowdery, who also serves as its executive chairman.
In a separate announcement on December 10, Nippon Life confirmed it had completed the acquisition of a 21.6% stake in US life insurer and asset manager Corebridge Financial from AIG for $3.838 billion. This deal was initially announced in May.
Beyond Japan, Nippon Life operates or holds stakes in businesses in the US, India, Myanmar, China, Thailand, and Indonesia.
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