Japan: Nippon Makes Record Overseas Insurance Purchase

Nippon Life Insurance, Japan’s largest private insurer, is spending $8.2 billion on global life insurance firm Resolution Life Group Holdings—marking the largest overseas acquisition in Japan’s insurance industry.

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This move underscores Nippon Life’s ambition to bolster its global presence amid a shrinking domestic market due to Japan’s aging population and low-interest-rate environment.

Resolution Life, established in 2017, specializes in managing portfolios of life insurance policies and reinsurance. With assets under management of $85 billion and 4.3 million policies, it provides Nippon Life with a platform to penetrate the US, the world’s largest life insurance market.

This acquisition transforms Resolution Life from an equity affiliate into a subsidiary, aiming to cement Nippon Life’s foothold in North America.

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The deal also aligns with Nippon Life’s mid-term business plan, which emphasizes global expansion and aims to double group core operating profit by 2035. Currently, only 4% of Nippon Life’s operating profit comes from international ventures. Post-acquisition, this share is projected to surge to 20 percent, diversifying revenue streams and reducing dependency on the domestic market.

In addition, the acquisition complements Nippon Life’s other recent investments, including a $3.8 billion stake in Houston-based Corebridge Financial. The integration of Resolution Life’s expertise with Nippon Life’s robust financial base is expected to unlock synergies in product offerings, operational efficiency and customer service.

Furthermore, the ongoing partnership with Blackstone will seek to bolster asset management strategies and enhance returns. The proposed acquisition underpins Nippon Life’s long-term strategy, and serves as a blueprint for leveraging international acquisitions to drive growth.