Nippon Life acquires MLC Life Insurance and Resolution Life
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The news: NAB has sold its remaining stake in MLC Life Insurance to Nippon Life Insurance Company. Nippon has also bought Resolution Life and will combine it with MLC Life Insurance to create Acenda.
The numbers: NAB sold 80% of MLC Life Insurance to Nippon in October 2016 and today offloaded the remaining 20% for $500 million.
Nippon Life will also acquire 100% of Resolution Life Group for around USD8.2 billion ($12.9 billion).
The context: On completion of deal, MLC Life Insurance and Resolution Life's Australasia subsidiary will merge to create one of Australia’s largest life insurance businesses, Nippon Life said.
As a part of the transaction, NAB has agreed to provide $150 million in capital support to the merged business, for a period of three years post completion.
The deal is expected to be completed in the second half of the 2025 calendar year, subject to regulatory approvals.
MLC will begin adopting the Acenda brand immediately, and Resolution Life Australasia will transition to Acenda after the transaction's completion. The two businesses will continue to operate separately until completion.
What they said: "This merger demonstrates our commitment to delivering innovative products, exceptional service, and leading customer experiences in the Australian life insurance market," said Nippon Life president Hiroshi Shimizu.
"... As we combine to serve around two million customers, we believe our customer-oriented approach will continue to deliver on the trust Australians have placed in us to protect them and their families, and deliver on our promise to be there when they need us."
MLC Life Insurance chair Peter Grey said: "This merger will ensure that our business’s great products and services will remain on sale and enable us to develop even better offerings to meet the future changing needs of our customers and partners".
“... While MLC Life Insurance will have a new brand, and become part of a larger group, we will continue to build on our 138-year Australian heritage with the same commitments to our customers and partners."
The sources: MLC Insurance media release, ASX announcement
