Nippon Life Insurance is reportedly edging closer to finalizing a significant potential acquisition. According to information from Resolution Life, Nippon Life is looking at purchasing Bermuda-based Resolution Life Group Holdings for a hefty sum of $8.2 billion.
Should this deal be successfully concluded, it would stand out as the largest overseas acquisition ever made by a Japanese insurer. This move would clearly highlight the growing trend among Japanese insurers to seek growth opportunities in foreign markets, especially in the United States. The Nikkei business daily initially broke the news about the planned transaction, revealing Nippon Life’s intention to acquire the remaining shares in Resolution Life from Blackstone and other stakeholders, with the aim of making it a wholly owned subsidiary by the second half of 2025. Reports suggest that the purchase would be financed through Nippon Life’s cash reserves.
While both Resolution Life and Nippon Life have acknowledged that discussions are ongoing, it’s important to note that no agreement has been finalized yet, and the outcome remains uncertain. Resolution Life made this clear in its statement, and Nippon Life also chose to refrain from divulging specific details. Meanwhile, Blackstone declined to comment on the report. Significantly, this potential acquisition would mark Nippon Life’s second major overseas investment in 2024, coming after its $3.8 billion purchase of a 20% stake in US insurer Corebridge Financial back in May.
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