Nippon Life Insurance is set to acquire all outstanding shares of Resolution Life Group Holdings for approximately $8.2 billion. This all-cash deal will give Japan’s largest insurer a significantly stronger foothold in the U.S. market, marking the largest overseas acquisition by a Japanese insurer to date.
The deal represents the second major transaction announced by Nippon Life this year and reflects a broader trend among Japanese insurers seeking expansion abroad. These companies are looking to international markets due to limited growth prospects at home, given the shrinking and aging population in Japan.
“For some time we have wanted to own a business that could be core in the largest global insurance market – the U.S.A,” said Hiroshi Shimizu, Nippon Life’s president, during a Wednesday news conference. “Resolution is an excellent company in a market that will grow so we want to secure its potential.”
Nippon Life currently holds a roughly 23% stake in Resolution Life, which is based in Bermuda, and aims to make it a wholly-owned subsidiary in the latter half of 2025. The acquisition values Resolution Life, which is owned by various investors including global investment firm Blackstone, at $10.6 billion.
Resolution Life will continue to be led by Chairman and CEO Clive Cowdery. As part of the agreement, Nippon Life will also acquire the remaining 20% stake it does not own in MLC Life from National Australia Bank for approximately A$500 million ($320 million). The plan is to merge MLC Life with Resolution Life Australasia to create Acenda, a new primary life insurer.
Nippon Life recently closed on Tuesday the purchase of a 21.6% stake in U.S. insurance firm Corebridge Financial for $3.8 billion, although the firm has lagged behind some domestic peers in U.S. acquisitions.
In addition to these moves, Nippon Life has also sought to diversify its domestic business, including the acquisition of nursing care provider Nichii Holdings for $1.4 billion in November of last year. Global expansion has been designated a strategic priority for the company in this and the next financial year, with the goal of doubling group core operating profit to around 1.4 trillion yen by the year 2035.
Resolution Life, established just seven years ago, is a closed-book insurer that acquires existing insurance policies from insurers in the U.S. and other countries and currently has $85 billion of assets under management and 4.3 million policies, according to Nippon Life. Blackstone, which has been Resolution Life’s investment management partner for directly originated assets comprising private credit and real estate, will maintain the partnership after Nippon Life’s acquisition. Within Japan’s insurance sector, Tokio Marine Holdings has also been particularly active with major acquisitions in recent years.
Cross-border mergers and acquisitions involving Japanese companies have seen a surge this year.
