Nippon Life Insurance Co, the largest Japanese life insurer by revenue, has agreed to invest an additional $1 billion in Resolution Life, a life and annuity insurance consolidator that operates in Bermuda, the UK, the US, Australia, and New Zealand.
The Japanese insurer has been the largest investor in Resolution Life Since 2019. The additional $1 billion commitment will bring its cumulative investment to $1.65 billion and its stake in the insurance consolidator to 20%, according to the announcement.
When the investment is completed, Resolution Life will become an equity-method affiliate of Nippon Life.
Since 2003, Resolution entities together with Resolution Life have deployed over $18 billion of equity in the acquisition, reinsurance, consolidation, and management of life insurance companies. Together, these companies have served the needs of 13 million policyholders while managing over $372 billion of assets.
Nippon Life’s investment comes as Resolution Life and Blackstone announced plans to raise $3 billion of new equity capital commitments to bring Resolution’s overall equity capital base to more than $8 billion. the commitments will also include a $500-million strategic investment from Blackstone.
“The enhanced capital base will allow Resolution Life to scale its growth path in a highly active acquisition market – continuing its mission of being a global custodian to life insurance and annuity policyholders,” according to the announcement.
Nippon Life earlier said the strategic partnership between Resolution Life and Blackstone will accelerate the growth and development of the insurance consolidator.
Blackstone will manage an initial target of up to $25 billion of Resolution Life’s existing private assets in the first year of the partnership, which is expected to increase to over $60 billion over the next six years.
According to a Nikkei report, Nippon Life also expects to gain representation on Resolution Life’s board and send employees to acquire knowledge in the growing insurance consolidation field.
As of last year, Nippon Life had 99 branches, 1,510 sales offices, and 18,771 agencies. It operates life insurance business in seven countries outside of Japan, including the US, Australia, India, Myanmar, and China.