Japan’s Nippon Life Insurance will buy the 77% of United States-based insurer Resolution Life Group Holding it does not own for US$8.2 billion ($12.8 billion) as part of transactions which are expected to be completed in the second half of 2025.
Nippon Life will also purchase the remaining 20% of MLC Life Insurance it does not own from National Australia Bank (NAB.ASX) for A$500 million ($US320 million) and integrate MLC with Resolution Life Australasia.
In a statement Japan’s largest life insurance company said it aimed to expand its global business between 2024 and 2026 and double group core operating profit and increase policyholder dividends by 2035.
“Under this direction, Nippon Life plans to realise expansion in its global business through growth in existing business and new business investments,” the mutual organisation said.
It said the acquisition of the balance of Resolution Life would give it a firmer footing in the United States, where is has a sizeable presence.
“For some time we have wanted to own a business that could be core in the largest global insurance market - the U.S.A," Hiroshi Shimizu, Nippon Life's president was quoted as saying.
"Resolution is an excellent company in a market that will grow so we want to secure its potential."
Nippon Life bought 80% of MLC from NAB in 2016 in a continuation of the overseas expansion by Japanese insurers, which face low growth in their domestic market due to a shrinking and ageing population and low interest rates.
Resolution Life was founded by Chairman and CEO Sir Clive Cowdery in 2018 to purchase insurance policies from insurers and has institutional support not only from Nippon Life but also from its investment management partner Blackstone Inc.
At 02.50pm (AEDT) NAB shares were trading 5.5 cents (0.15%) higher at $37.64 after trading between $37.50 and $37.94 and capitalising the bank at $115.7 billion.