Nissay set for growth with $8.2b acquisition: AM Best

Nissay plans to integrate MLC with Resolution Life Australia after the deal.

Nippon Life Insurance Co.’s (Nissay) acquisition of Resolution Life is anticipated to contribute to its immediate profitability whilst advancing its strategic goal of geographic diversification, AM Best reported. 

This move aligns with Nissay’s long-term strategy to secure sustainable growth within the competitive global life insurance market.

The $8.2b deal, announced last 11 December, will consolidate Nissay’s existing equity interest in Resolution Life, transforming it into a wholly owned subsidiary. 

Completion of the transaction, which is contingent on regulatory approvals, is anticipated in the latter half of 2025.  

The acquisition also involves a related deal to purchase the remaining 20% equity stake in MLC Life Insurance (MLC) from National Australia Bank Limited for $309.94m. 

Post-acquisition, Nissay plans to integrate MLC with Resolution Life Australia Limited to bolster its presence in the Australian life insurance market.  

Despite potential moderate erosion of risk-adjusted capitalisation, Nissay's substantial capital base of $62b as of September 2024 underpins its ability to absorb the acquisition costs.