Nippon Life Insurance Co. will acquire full ownership of Resolution Life for $8.2 bn. The payment will secure Nippon Life the remaining shares from Resolution Life’s investment limited partnership.
The deal values Resolution Life at $10.6 bn, with existing shareholders entitled to final dividends before the transaction closes.
Resolution Life’s institutional operations in the US, UK, Bermuda, and Singapore will become a subsidiary of Nippon Life. This addition will form a new division to support Nippon Life’s Japanese life insurance business, along with its international asset management and retail units.
The transaction aims to drive growth for both companies within the life and annuity consolidation sector, valued in the trillions. Resolution Life, which includes Resolution Re, Resolution Life US, and Resolution Life Australasia, will maintain its existing brand. The merger of Resolution Life Australasia with Nippon Life’s MLC in Australia will create a new entity named Acenda.
Clive Cowdery will remain chairman and CEO of Resolution Life, while Resolution Life Group Holdings will continue as the main regulated entity.
Nippon Life initially invested in Resolution Life in 2019, becoming its largest investor. Since then, Resolution Life has expanded to $85 bn in reserves, managing over 4 mn policies.
Hiroshi Shimizu, president of Nippon Life, described the acquisition and formation of Acenda as a testament to Nippon Life’s strategy to partner with leading firms and teams to deliver innovative products and services.
The announcement follows Resolution Life’s earlier confirmation that discussions with Nippon Life were underway, although no details were disclosed at that time.
