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Japan’s Nippon Life invests US$230 million in reinsurer Resolution Life

Nippon Life
By Hui Ching-hoo   
May 18, 2021

Japan’s Nippon Life Insurance is investing another US$230 million in Bermuda-based reinsurer Resolution Life Group Holdings, which is targeting $1.6 billion from institutional investors in a new round of fundraising.

The Japanese insurer invested an initial $157 million in Resolution Life in its earlier fundraising round in 2019, when the target was over $3 billion. The new target would raise the total raised since the company’s inception in 2018 to around $5 billion.

“As a social mission of a life insurer, Nippon Life is exerting efforts to boost profitability in attempts to fulfil its obligations in delivering coverage to customers as well as offering a sense of security,” the company says in a statement on May 15. “This investment is part of such efforts in addition to enhancing Nippon Life Group’s businesses by learning from and leveraging Resolution Life’s capabilities and knowledge.”

According to information published on Resolution Life’s website, the company has drawn down from its fundraising to finance foreign deals, including the acquisition of Sydney-based AMP Group’s life insurance business for A$3 billion ($2.31 billion) in July 2020.

Tokyo-based Nippon Life had 715.3 trillion yen ($6.5 trillion) of assets as of December 2020, and Resolution Life has around $60 billion of assets currently.