Nippon Life to acquire Resolution Life for $8.2 billion

Japanese insurance giant Nippon Life revealed its $8.2 billion (JPY 1.2 trillion) deal to acquire Resolution Life Group Holdings Ltd. on December 11, marking the company's most ambitious international expansion to date.

The announcement comes just days after Nippon Life completed its $3.8 billion acquisition of a 21.6% stake in Corebridge Financial from AIG on December 9.

The Resolution Life deal structure includes buying out the company, where Nippon Life already holds significant stake as an equity affiliate, plus acquiring the remaining 20% stake in MLC Life Insurance from National Australia Bank for A$500 million ($319.1 million).

Also read: Resolution Life Australasia targets growth via acquisitions, partnerships

The company plans to subsequently integrate MLC with Resolution Life Australasia.

Through this strategic move, Nippon Life expects its global business contribution to jump dramatically from 4% to approximately 20% of group profits.

"Through the strength of these overseas business subsidiaries, Nippon Life aims to achieve long-term stable growth in overseas business profit and, ultimately, to maximise benefits of its policyholders," the company stated.

The deal maintains Resolution Life's existing strategic partnership with Blackstone for asset management services.

While announced December 11, the transaction isn't expected to close until the second half of 2025, pending regulatory approvals from authorities in Japan, the US, Bermuda, and Australia.

These back-to-back acquisitions align with Nippon Life's stated goal to "double Group core operating profit to approx. JPY 1.4tn by 2035," representing an aggressive push into international markets while maintaining its strong domestic Japanese presence.