Nippon Life Insurance, Japan’s largest private insurer, is spending $8.2 billion on global life insurer Resolution Life Group Holdings, marking the largest overseas acquisition in Japan’s insurance industry.
The move underscores Nippon Life’s ambition to strengthen its global presence amid a shrinking domestic market due to Japan’s aging population and low interest rate environment.
Founded in 2017, Resolution Life specializes in managing portfolios of life insurance and reinsurance policies. With US$85 billion in assets under management and 4.3 million policies, it provides Nippon Life with a platform to penetrate the United States, the world’s largest life insurance market.
This acquisition transforms Resolution Life from an equity subsidiary to a subsidiary, with the aim of strengthening Nippon Life’s foothold in North America.
The deal is also in line with Nippon Life’s medium-term business plan, which emphasizes global expansion and aims to double the group’s core operating profits by 2035. Currently, only 4% of Nippon Life’s operating profits come from international projects. After the acquisition, this share is expected to rise to 20%, which will diversify revenue sources and reduce dependence on the local market.
Additionally, the acquisition complements Nippon Life’s other recent investments, including a $3.8 billion stake in Houston-based Corebridge Financial. Combining Solution Life’s expertise with Nippon Life’s strong financial base is expected to unleash synergies in product offerings, operational efficiency and customer service.
Furthermore, the ongoing partnership with Blackstone will seek to enhance asset management strategies and enhance returns. The proposed acquisition supports Nippon Life’s long-term strategy and serves as a blueprint to leverage international acquisitions to drive growth.
