Tuesday, February 4, 2025
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Nippon Life Insurance, Japan’s leading life insurer, has announced a significant move to bolster its presence in the United States market. The company has agreed to acquire all remaining shares of Resolution Life Group Holdings for a total of $8.2 billion in cash. This strategic acquisition marks the largest overseas purchase by a Japanese insurer to date.

The deal signifies Nippon Life’s commitment to international expansion, particularly within the promising US insurance market. Facing a maturing domestic market with a declining and aging population, Japanese insurers are actively seeking growth opportunities abroad.

“We’ve long desired to own a core business within the world’s largest insurance market – the US,” stated Nippon Life President Hiroshi Shimizu at a press conference. “Resolution Life represents an exceptional company in a high-growth market, and we aim to capitalize on its full potential.”

This acquisition will transform Resolution Life, currently owned by a consortium of investors including global investment firm Blackstone, into a wholly-owned subsidiary of Nippon Life by the second half of 2025. The deal values Resolution Life, specializing in closed-book life insurance policies, at $10.6 billion. Importantly, the existing leadership team, led by Chairman and CEO Clive Cowdery, will remain in place.

The transaction extends beyond the main Resolution Life acquisition. As part of the deal, Nippon Life will also acquire the remaining 20% stake it doesn’t already own in MLC Life from National Australia Bank for roughly $320 million. This acquisition will be merged with Resolution Life Australasia to create a new primary life insurer named Acenda.

This strategic move follows Nippon Life’s recent purchase of a 21.6% stake in US insurer Corebridge Financial for $3.8 billion, completed just a day before the Resolution Life announcement. These acquisitions solidify Nippon Life’s intent to become a major player in the US insurance market, following a period of lagging behind domestic peers in such ventures.

Nippon Life has also aimed to diversify its domestic business through acquisitions like the purchase of nursing care provider Nichii Holdings for $1.4 billion in late 2023. Global expansion is a top priority for the company, with the goal of doubling its core operating profit to roughly 1.4 trillion yen by 2035.

Resolution Life, established just seven years ago, focuses on acquiring existing insurance policies from insurers in the US and other countries. By the time of the acquisition, Resolution Life will manage $85 billion in assets and hold over 4.3 million policies. Notably, the longstanding partnership between Resolution Life and Blackstone for managing directly originated assets like private credit and real estate will continue even after the takeover by Nippon Life.

Nippon Life’s significant investment in Resolution Life underscores the growing trend of Japanese insurance companies looking to capitalize on the potential of the US market. This acquisition positions Nippon Life for substantial growth and solidifies its position as a global leader in the insurance industry.

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