Nippon Life Insurance in Talks to Acquire US Life Insurer Resolution Life Group Holdings
Nippon Life Insurance is in the final stages of buyout talks with US life insurer Resolution Life Group Holdings, Resolution said on Tuesday (Dec 10), in what would reportedly be a US$8.2 billion deal that highlights Japanese insurers’ hunt for growth in the world’s biggest economy.
Deal Details
The acquisition, which was first reported by the Nikkei business daily, would be worth around US$8.2 billion, the newspaper said. If the deal goes ahead, it will be the largest ever foreign acquisition by a Japanese insurer.
Nippon Life will purchase the shares it does not already own in Resolution Life from Blackstone and others to make it a wholly owned subsidiary in the second half of 2025 and will pay for the acquisition with cash on hand, the Nikkei said.
Reasons Behind the Acquisition
The deal is the latest example of heavyweight Japanese insurance companies going abroad in search of acquisitions in faster-growing markets, given the limited chance for expansion at home where the population is shrinking and ageing.
Background
Resolution Life is a closed-book insurer that purchases existing insurance policies from insurers in the US and other countries. Nippon Life has built up a 23 per cent stake in the firm since 2019, spending a total of US$1.68 billion thus far, the Nikkei said.
Conclusion
The acquisition of Resolution Life Group Holdings by Nippon Life Insurance would mark a significant milestone in the Japanese insurer’s efforts to expand its presence in the global market. The deal would also highlight the trend of Japanese companies seeking growth opportunities abroad due to the limited prospects for expansion at home.
Frequently Asked Questions
Q: What is the value of the proposed acquisition?
A: The proposed acquisition is reportedly worth around US$8.2 billion.
Q: Who is Resolution Life Group Holdings?
A: Resolution Life is a closed-book insurer that purchases existing insurance policies from insurers in the US and other countries.
Q: Why is Nippon Life Insurance acquiring Resolution Life Group Holdings?
A: Nippon Life Insurance is seeking to expand its presence in the global market and capitalize on growth opportunities abroad due to the limited prospects for expansion at home.
