Nippon Life Insurance Acquires Resolution Life in $8.2 Billion Cross-Border Deal
Japan's largest private life insurer acquires Resolution Life Group for approximately $8.2 billion, marking one of the largest outbound deals by a Japanese financial institution.
Nippon Life Announces Landmark Acquisition of Resolution Life
Nippon Life Insurance, Japan's largest private life insurer, announced the acquisition of Resolution Life Group for approximately JPY 1.25 trillion ($8.2 billion), marking one of the largest outbound deals by a Japanese financial institution in recent years. The transaction, initially announced in December 2024, is expected to close in the second half of 2025 after receiving regulatory approvals across multiple jurisdictions.
About Resolution Life
Resolution Life is a global life insurance group specializing in the acquisition and management of portfolios of in-force life insurance policies. The company operates primarily in the United States, the United Kingdom, and Australia, managing approximately $90 billion in assets across its various platforms.
Addressing Japan's Demographic Challenge
For Nippon Life, the deal addresses a fundamental strategic challenge facing Japan's life insurance industry: a shrinking domestic population. Japan's declining birth rate and aging demographics have placed structural pressure on premium growth at home, compelling the country's largest insurers to seek growth internationally. Nippon Life has identified the US and Australian life insurance markets as particularly attractive given their scale, regulatory stability, and long-term growth dynamics.
Legacy Book Consolidation Trend
The acquisition also positions Nippon Life to benefit from the growing trend of life insurance companies shedding legacy books of business. Major insurers in the US and Europe have increasingly looked to offload blocks of older policies to specialized acquirers like Resolution Life, creating a steady pipeline of acquisition opportunities.
Deal Valuation and Financing
Industry analysts have noted that the deal's pricing reflects a modest premium to Resolution Life's embedded value, suggesting disciplined underwriting by Nippon Life. The transaction is being financed through a combination of internal resources and subordinated debt.
Japanese Insurers' Global Expansion
The deal follows a pattern of Japanese insurers expanding abroad. Dai-ichi Life, Sumitomo Life, and Meiji Yasuda Life have all made significant international acquisitions in recent years, collectively investing tens of billions of dollars in overseas operations.
