Japan’s Nippon Life Insurance plans to acquire the remaining stake in Resolution Life Group Holdings for approximately $8.2bn (Y1.25trn).
This deal marks the largest overseas acquisition by a Japanese insurer to date and the second major deal by Nippon Life in 2024, reported Reuters.
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The acquisition is set to make Bermuda-based Resolution Life a wholly owned subsidiary of Nippon Life, with the deal valuing Resolution Life at $10.6bn.
Currently, Nippon Life holds a 23% stake in Resolution Life.
Post-acquisition, Resolution Life’s institutional business in the US, the UK, Bermuda and Singapore will operate as a subsidiary of Nippon Life.
Clive Cowdery will continue his role as chairman and CEO of Resolution Life post-deal.
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By GlobalDataResolution Life Group Holdings will remain the primary regulated entity.
Cowdery stated: “For 22 years, Resolution Life and prior Resolution companies have raised our capital from institutional investors and the public markets. I am delighted that we are now going forward under the single ownership and capital support of Nippon Life, an institution I admire and respect.”
The transaction finalises a partnership that began in 2019 when Nippon Life first invested in Resolution Life.
In addition to this deal, Nippon Life has reached an agreement to acquire the remaining 20% stake in MLC Life Insurance (MLC) from the National Australia Bank (NAB).
This transaction will merge MLC with Resolution Life Australasia to create a new entity, Acenda, a primary life insurer.
Nippon Life president Hiroshi Shimizu said: “We believe the acquisition of Resolution Life and the formation of Acenda demonstrates our commitment to working with exceptional businesses and teams to deliver innovative products and services.”
The acquisition of MLC is expected to cost approximately A$500m, with the Australian NOHC (non-operating holding company) to include both Resolution Australasia and MLC as subsidiaries.
Resolution Life operates as a closed-book insurer and manages $85bn in assets with 4.3 million policies.
The company has had a partnership with Blackstone since 2022, which will continue as the investment manager for directly originated assets across the private credit, real estate and asset-based-finance markets.
The completion of the transaction is subject to regulatory approvals and is set for H2 2025.
Nippon Life recently finalised the acquisition of a 21.6% stake in Corebridge Financial from AIG for $3.8bn.
