Nippon Life in Final Stages of $8.2 Billion Buyout Talks

By Anton Bridge

TOKYO (Reuters) – Nippon Life Insurance (NS:LIFI) is in the final stages of buyout talks with U.S. life insurer Resolution Life Group Holdings, as reported on Tuesday. This deal could reach around $8.2 billion, highlighting Japanese insurers' desire for growth in larger economies.

The acquisition was first noted by the Nikkei business daily and would represent the largest foreign acquisition ever made by a Japanese insurer. Nippon Life intends to buy the remaining shares of Resolution Life from Blackstone (NYSE:BX) and others, making it a wholly owned subsidiary by the second half of 2025, with financing from cash on hand.

This move is part of a larger trend of prominent Japanese insurance companies seeking acquisitions in faster-growing markets, largely due to limited opportunities at home where the population is both shrinking and aging.

Bermuda-based Resolution Life has confirmed ongoing talks regarding the acquisition but stated that discussions are not yet finalized, and there is no assurance it will happen. A spokesperson for Nippon Life acknowledged the negotiations but refrained from disclosing specific details.

Blackstone has declined to comment on the Nikkei report.

If finalized, this acquisition would mark Nippon Life's second significant international investment this year, following its $3.8 billion acquisition of a 20% stake in U.S. insurance company Corebridge Financial in May. Nippon Life has also aimed to diversify domestically, having acquired nursing care provider Nichii Holdings for $1.4 billion in November of last year, although it trails other Japanese insurers in U.S. acquisitions.

Notably, Tokio Marine Holdings has made several significant acquisitions, including HCC Insurance Holdings for $7.5 billion in 2015 and Delphi Financial for $2.7 billion in 2011.

This year has seen a surge in cross-border M&A among Japanese companies, driven by updated guidelines that promote the takeover of Japanese firms. Japanese companies are actively seeking growth abroad as their domestic market continues to decline.

Resolution Life primarily serves as a closed-book insurer, acquiring existing insurance policies from U.S. and international insurers. Since 2019, Nippon Life has amassed a 23% stake in the firm, investing a total of $1.68 billion.

(NOTE: This article was corrected to clarify that the Nikkei newspaper reported the acquisition's value at $8.2 billion, not Resolution Life.)