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Nippon Life secures Resolution Life for $10.6 billion

Published 12/11/2024, 02:04 AM
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TOKYO - Nippon Life Insurance (NS:LIFI) Company, a leading Japanese insurer, has fully acquired Resolution Life Group, a global life insurance group, in a deal valuing the latter at $10.6 billion. The announcement came today as Nippon Life agreed to purchase the remaining shares from Resolution Life's investment limited partnership for $8.2 billion.

The transaction is poised to bolster growth for both entities in the global life and annuity consolidation sector, which commands trillions of dollars. Resolution Life, which includes Resolution Re, Resolution Life US, and Resolution Life Australasia, will maintain its brand identity. In a strategic move, Resolution Life Australasia will merge with Nippon Life's Australian business, MLC, to create Acenda, a new primary life insurer.

Blackstone (NYSE:BX), a prominent investment management firm, will continue to manage investments for Resolution Life, focusing on private credit and other key areas. This enduring partnership reflects Blackstone's significant contribution to Resolution Life's business and policyholders.

Post-acquisition, Resolution Life's operations in the U.S., the U.K., Bermuda, and Singapore will become a subsidiary of Nippon Life. This new division is expected to complement Nippon Life's existing Japanese life business and its international asset management and retail operations. Clive Cowdery will continue to lead as Chairman and CEO, with Resolution Life Group Holdings Ltd remaining the primary regulated entity.

For Resolution Life, this acquisition secures its leadership position in the life and annuity consolidation sector, enabling accelerated growth and continued service to policyholders and the insurance industry. Nippon Life views the acquisition as a strategic advancement toward their medium-term plan for international business expansion, aiming for long-term growth and stable dividends from overseas markets.

Hiroshi Shimizu, President of Nippon Life, emphasized the mutual company's customer-centric culture and expressed that the acquisition and the creation of Acenda align with their commitment to innovative products and services.

Sir Clive Cowdery, Founder and Executive Chairman of Resolution Life, expressed enthusiasm for the future under Nippon Life's singular ownership and capital support, highlighting the shared values and vision between the two companies.

The completion of this transaction is subject to regulatory approvals and is anticipated in the second half of 2025. This strategic acquisition is based on a press release statement and marks a significant milestone in the global life insurance landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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