Resolution Life, a global life insurance group known for managing portfolios of life insurance policies, has announced that Nippon Life Insurance Company (Nippon Life) will acquire 100% of the company.
The deal, valued at $10.6 billion, sees Nippon Life paying $8.2 billion to acquire the remaining shares held by Resolution Life’s investment limited partnership. Shareholders of Resolution Life will also receive final dividends before the deal’s completion.
Once the acquisition is finalised, Resolution Life’s institutional business, which includes operations in the US, UK, Bermuda, and Singapore, will become a subsidiary of Nippon Life. This move creates a new division within Nippon Life that complements its Japanese life business and strengthens its international asset management and retail operations. Despite the acquisition, Resolution Life will continue to be led by Clive Cowdery, who will remain in his role as Chairman and CEO, and Resolution Life Group Holdings Ltd will continue to be the primary regulated entity.
Additionally, Resolution Life’s Australasian business will merge with Nippon Life’s Australian company, MLC, to form Acenda, a new primary life insurer. Acenda will be open to new business and will be operated as a joint venture between Nippon Life and Resolution Life.
Hiroshi Shimizu, President of Nippon Life, commented on the acquisition, saying: “As a mutual company owned by our policyholders, Nippon Life has always had a culture which puts customers at the heart of everything we do. We believe the acquisition of Resolution Life and the formation of Acenda demonstrates our commitment to working with exceptional businesses and teams to deliver innovative products and services. We are aligned with Resolution Life and our investment management partner Blackstone in continuing to deliver on the trust policyholders have placed in us to protect them and their families when they need us.”
Sir Clive Cowdery, Founder and Executive Chairman of Resolution Life, expressed his enthusiasm for the new phase in the company’s journey. “For 22 years, Resolution Life and prior Resolution companies have raised our capital from institutional investors and the public markets. I am delighted that we are now going forward under the single ownership and capital support of Nippon Life, an institution I admire and respect. There is a strong foundation of shared values, clarity of vision and breadth of capabilities across our organisations. Combining Resolution Life’s strengths, the investment management expertise of our partners at Blackstone, and a well-funded parent gives us the opportunity to accelerate our growth and serve the needs of policyholders into the decades ahead.”
Gilles Dellaert, Global Head of Blackstone Credit and Insurance (BXCI), also weighed in on the acquisition, saying: “We are very pleased with this outcome for Resolution Life’s policyholders and investors. Clive Cowdery has built a tremendous insurance platform, and we believe that this expanded partnership with the world-class team at Nippon Life will help drive its accelerated global growth. We look forward to continuing to deliver the benefits of Blackstone’s leading private credit and asset origination capabilities to Resolution Life and its policyholders in this next chapter with Nippon Life.”