Nippon Life Insurance, Japan’s largest life insurer, has announced its intent to acquire the remaining shares of Bermuda-based Resolution Life Group Holdings for approximately $8.2 billion. This all-cash deal will significantly boost Nippon Life’s presence in the U.S. insurance market, a strategic priority for the company as it seeks to diversify and grow internationally.
The $8.2 billion deal, which is the largest overseas acquisition by a Japanese insurer to date, underscores the increasing trend among Japanese insurers to expand beyond their home market. With Japan’s domestic insurance market facing stagnation due to a shrinking and aging population, insurers like Nippon Life are keen to tap into the larger, more dynamic markets abroad, particularly in the U.S.
Hiroshi Shimizu, President of Nippon Life, explained the rationale behind the acquisition, stating, “For some time, we have wanted to own a business that could be core in the largest global insurance market—the U.S.A. Resolution is an excellent company in a market that will grow, so we want to secure its potential.”
Resolution Life, which specializes in acquiring and managing existing life insurance policies from other insurers, has become a key player in the global life insurance sector. The company manages assets worth approximately $85 billion and administers over 4.3 million policies worldwide. It was founded just seven years ago and has since grown into a significant force in the “closed-book” insurance business. The term “closed-book” refers to insurers that no longer actively sell new policies but continue to manage the existing portfolio of policies.
The deal values Resolution Life at $10.6 billion, with the remaining stake to be acquired from a consortium of investors led by the global investment firm Blackstone. Resolution Life will remain under the leadership of Chairman and CEO Clive Cowdery, who has overseen the company’s rapid expansion. Blackstone, a major investor and management partner of Resolution Life, will continue its involvement even after Nippon Life’s acquisition is finalized.
In addition to the acquisition of Resolution Life, Nippon Life will also acquire a 20% stake in MLC Life from National Australia Bank (NAB), valued at approximately A$500 million ($320 million). This transaction is part of Nippon Life’s broader strategy to consolidate its holdings in the life insurance sector and create a new primary life insurer, Acenda, through the merger of MLC Life and Resolution Life Australasia.
This move to consolidate its insurance assets aligns with Nippon Life’s goal of becoming a more prominent player in the global insurance market. The insurer has set ambitious targets for its global expansion, including doubling its core operating profit to around ¥1.4 trillion (approximately $9.4 billion) by 2035. Nippon Life’s focus on the U.S. market is particularly noteworthy, as the company has lagged behind some of its Japanese peers in terms of acquisitions in the region.
In recent months, Nippon Life has taken steps to strengthen its foothold in the U.S. with the purchase of a 21.6% stake in Corebridge Financial, a U.S.-based insurer, for $3.8 billion. The company has also diversified its operations within Japan, acquiring nursing care provider Nichii Holdings for $1.4 billion in November 2023. These investments reflect Nippon Life’s broader strategy of diversifying its portfolio and expanding into new growth areas.
Japan’s insurance sector has seen significant activity in recent years. Among its competitors, property and casualty insurer Tokio Marine Holdings has been particularly aggressive in expanding internationally. Notably, Tokio Marine made several high-profile acquisitions, including the $7.5 billion purchase of HCC Insurance Holdings in 2015, and the $2.7 billion acquisition of Delphi Financial in 2011. Nippon Life’s latest move places it in direct competition with such industry giants as it seeks to increase its presence on the global stage.
Resolution Life’s acquisition by Nippon Life represents a key milestone in Japan’s strategy to expand its footprint in the global insurance market. By taking full control of Resolution Life, Nippon Life aims to leverage the company’s robust portfolio of assets and policies to strengthen its position in the U.S. and other key international markets. The deal is expected to close in the second half of 2025, marking a significant step in Nippon Life’s ambitious plans for global growth.
With the U.S. market projected to continue growing, Nippon Life’s acquisition of Resolution Life positions it well to capitalize on new opportunities in life insurance. The deal also highlights the increasing trend of Japanese insurers seeking international growth through acquisitions, a strategy that has become essential for companies facing limited growth prospects at home.
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