Resolution Life Acquired by Nippon Life for $10.6 Billion
Deal News | Dec 11, 2024 | Blackstone
Nippon Life Insurance has announced its acquisition of 100% of Resolution Life, a global life insurance group, in a deal valued at $10.6 billion. The acquisition will involve a payment of $8.2 billion by Nippon Life to acquire the outstanding shares from Resolution Life's investment partnership. The transaction enhances Nippon Life's international business strategy amidst a competitive global life and annuity consolidation sector. Post-acquisition, Resolution Life will become a subsidiary of Nippon Life, with its Australasian business merging with Nippon's Australian company, MLC, to form a new venture named Acenda. Blackstone will maintain its role as Resolution Life's investment manager, providing services across private credit and more. The strategic move is expected to accelerate the growth of both companies, reinforcing Resolution Life's position in the sector while allowing Nippon Life to broaden its asset management and product offerings globally.
Sectors
- Insurance
- Private Equity and Investment Management
- Financial Services
Geography
- Global – The operations and implications of the acquisition have a global reach, involving companies active in Europe, North America, and Asia-Pacific.
- Australia – Resolution Life Australasia's merger with Nippon Life's Australian operations to form Acenda underscores the significance of the Australian market.
- Japan – Nippon Life, the acquiring company, is headquartered in Japan, and the deal aligns with its international growth strategy.
Industry
- Insurance – The article primarily revolves around Resolution Life and Nippon Life, both significant players in the global life insurance industry.
- Private Equity and Investment Management – Blackstone's role as an investment manager for Resolution Life places it within the context of private equity and investment management.
- Financial Services – This sector covers the activities involved, including financial and legal advisory roles played by firms like Goldman Sachs, J.P. Morgan, and Morgan Stanley.
Financials
- $10.6 billion – Valuation of the acquisition deal between Nippon Life and Resolution Life.
- $8.2 billion – Cost of the remaining shares that Nippon Life will pay to acquire 100% of Resolution Life.
- $385 billion – Approximately the amount of assets managed by Resolution Life globally.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Resolution Life | Target company | Company | A global life insurance group focusing on acquiring and managing life insurance policy portfolios. |
| Nippon Life | Buyer | Company | Japan's largest private asset owner, expanding its international insurance business. |
| Blackstone | Investment Manager | Company | The world's largest alternative asset manager, continues to manage Resolution Life's investment portfolio. |
| MLC | Subsidiary | Company | Nippon Life's Australian company participating in the merger to form Acenda. |
| Goldman Sachs & Co. LLC | Financial Advisor | Company | Financial advisor for Resolution Life in the acquisition transaction. |
| Debevoise & Plimpton LLP | Legal Advisor | Company | Legal counsel for Resolution Life in the acquisition transaction. |
| J.P. Morgan | Lead Financial Advisor | Company | Nippon Life's lead financial advisor in the acquisition. |
| Morgan Stanley | Financial Advisor | Company | Financial advisor for Nippon Life in the acquisition. |