Nissay acquires Resolution Life

• Resolution Life announces the acquisition of 100% of its shares by Nippon Life at a valuation of $10.6 billion
• The transaction will accelerate growth for both Resolution Life and Nippon Life in the highly active, multi-trillion-dollar global life and annuity consolidation sector
• Resolution Life, which comprises Resolution Re, Resolution Life US and Resolution Life Australasia will retain the Resolution brand
• Resolution Life Australasia and Nippon Life’s Australian company, MLC, will be merged to form Acenda
• Blackstone will continue to be Resolution Life’s investment manager across private credit and other key areas

Resolution Life, a global life insurance group focusing on the acquisition and ongoing management of portfolios of life insurance policies, announced that Nippon Life has agreed to acquire 100% of the company.

Nippon Life will consolidate its ownership interest by paying $8.2 billion to acquire the remaining shares from Resolution Life’s investment limited partnership, valuing Resolution Life at $10.6 billion, with shareholders also retaining final dividends before completion.

Following the acquisition, Resolution Life’s institutional business in the US, the UK, Bermuda and Singapore will become a subsidiary of Nippon Life, creating a new division that complements Nippon Life’s Japanese life business as well as its international asset management and retail businesses. Resolution Life will continue to be led by Clive Cowdery as Chairman and CEO and Resolution Life Group Holdings Ltd will remain the primary regulated entity.

Resolution Life’s Australasian business will be combined with Nippon Life’s Australian company, MLC, to form Acenda, a new primary life insurer open to new business, which will be run as a joint venture between Nippon Life and Resolution Life.

The transaction completes a partnership that began in 2019 when Nippon Life first invested in Resolution Life. Since then, it has remained the company’s largest investor and supported the growth of Resolution Life into a company with over $85bn of reserves and over 4m policies.

For Resolution Life, this transaction enables the company to secure its position as a leader in the multi-trillion-dollar global life and annuity consolidation sector. Having a single well-capitalised parent will enable Resolution Life to accelerate its growth and continue to serve the needs of policyholders and the broader life insurance industry.

For Nippon Life, this transaction is a further step towards achieving their stated medium-term plan to grow their international business and deliver long-term growth and stable dividends from overseas markets. It will enhance Nippon Life’s product offering as well as expanding the application of asset management, liability management and digital skills by leveraging Resolution Life’s existing capabilities, including a highly experienced global team.

Resolution Life will continue its mission of being a global custodian to the life insurance and annuity industry by providing capital for growth, removing stranded costs and mitigating long-term risks so that the industry can continue to respond to the needs of policyholders.

Resolution Life is regulated by the Bermuda Monetary Authority with a strong group capital position, high solvency ratios and investment grade ratings.

Blackstone will continue its relationship with Resolution Life as the company’s investment manager for directly originated assets across the private credit, real estate and asset-based-finance markets — reflecting the significant value Blackstone’s origination platform has provided to the business and its policyholders. Resolution Life will also continue as Blackstone’s strategic partner in the life and annuity consolidation sector globally.

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