TOKYO: Nippon Life Insurance is set to acquire US-based Resolution Life Group Holdings in a transaction worth approximately $8.2 billion, marking the largest acquisition ever by a Japanese insurer, according to a report by the Nikkei business daily.
The deal involves Nippon Life purchasing the remaining shares in Resolution Life that it does not already own from Blackstone and other shareholders, transforming the firm into a wholly owned subsidiary by the latter half of 2025. The acquisition will be financed entirely through Nippon Life’s cash reserves.
The move underscores a growing trend among Japanese insurance giants to pursue opportunities in international markets as domestic growth remains constrained by Japan’s aging and shrinking population.
A spokesperson for Nippon Life confirmed ongoing discussions with Resolution Life but declined to provide further details. Resolution Life and Blackstone also refrained from commenting on the report.
Second major deal
This acquisition is Nippon Life’s second major transaction of the year, following its $3.8 billion purchase of a 20 per cent stake in US insurer Corebridge Financial in May. It highlights the United States as a key focus for expansion, aligning with similar strategies by other Japanese insurers.
For example, Tokio Marine Holdings has made significant acquisitions in the US including the $7.5 billion purchase of HCC Insurance in 2015 and earlier deals for Delphi Financial and Philadelphia Consolidated.
Nippon Life, which has already invested $1.65 billion to acquire a 23 per cent stake in Resolution Life, will fully integrate the Bermuda-based firm, known for its “closed-book” insurance business that involves purchasing existing policies from insurers in the U.S. and other global markets.
The acquisition solidifies Nippon Life’s presence in the international insurance arena while reflecting its strategic pivot to faster-growing markets beyond Japan.
