Major Acquisitions Shake Up the Australian Life Insurance Sector
Major Acquisitions Shake Up the Australian Life Insurance Sector
Nippon Life, based in Japan, aims to gain full ownership of Bermuda-headquartered Resolution Life. This entity, known locally as Resolution Life Australasia, found its place in the Australian market after acquiring the AMP life business in 2020. Nippon Life already has a minority share in the Bermuda operations, extending its reach into the UK and US markets.
The newly formed company, Acenda, promises to be a significant force in Australia's insurance landscape. MLC predicated in a statement, "Acenda will therefore become one of Australia’s largest life insurance corporations." This transaction anticipates completion in the latter half of the upcoming year, contingent on receiving regulatory approvals.
An additional agreement will see Nippon Life purchasing NAB’s remaining 20% stake in MLC for $500 million. NAB had initially sold the majority 80% of its shares to Nippon Life in 2016. The closure of this transaction is tied to the successful completion of Resolution Life’s acquisition deal.
"The Resolution Life acquisition creates a timely opportunity for NAB to divest its residual stake in MLC Life Insurance," the bank commented regarding its strategic realignment.
Post-acquisition, Nippon Life’s expanded Australian enterprise is projected to serve approximately two million customers. Hiroshi Shimizu, Nippon Life’s president, underscored the focus on customer satisfaction by stating, "Acenda, integrated within the global Nippon Group, will strongly adhere to its ‘customer first’ ethos."
Joining these sentiments, MLC Life Insurance’s chair, Peter Grey, highlighted the benefits of the merger, suggesting it would enable "the development of superior products to satisfy the evolving demands of our clients and collaborators. We anticipate fostering growth and innovation under the Acenda brand."
Resolution Life's chairman Clive Cowdery praised this merger as a groundbreaking advancement for Australia’s life insurance industry. “With Nippon Life’s substantial investment and Resolution Life’s expertise, we aim to position ourselves among the top three leaders in the Australasian market,” Cowdery elaborated.
The rebranding to Acenda is set to begin with MLC Life Insurance, followed by Resolution Life Australasia once the merger is finalized. Meanwhile, Resolution Life’s acquisition of New Zealand’s Asteron Life from Suncorp, announced earlier in 2024 for $372 million, will continue as planned.
Resolution Life stated, "The New Zealand market remains a strategic focus, following the agreement with Suncorp Group’s Asteron Life New Zealand acquisition. Pending regulatory consent, Asteron Life will remain open for business, retaining its established brand identity and independent operation."
These developments were originally reported by Insurance News Magazine and highlight dynamic shifts in the insurance landscape.
Published:Wednesday, 18th Dec 2024
Source: Paige Estritori
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The maximum amount an insurer will pay for all covered losses during a policy period.