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Japan’s Nippon Life buys MassMutual’s remaining stake in Nippon Wealth

MassMutual
By Hui Ching-hoo   
September 27, 2021

Japan’s Nippon Life Insurance is turning Nippon Wealth Life Insurance into a wholly-owned unit by acquiring the minority stake held by US insurer MassMutual International LLC, a move aimed at bolstering its bancassurance business.

MassMutual International used to own 100% of Nippon Wealth, formerly MassMutual Japan. The firm was renamed after Mass Mutual sold 85.1% of the shareholding to Nippon Life in May 2018.

Nippon Life, Japan’s largest life insurer, paid 104.2 billion yen (US$955 million) for the stake, and is now acquiring the balance 14.9% for an undisclosed sum.

“Nippon Life made Nippon Wealth Life into a wholly-owned subsidiary to further strengthen the Nippon Life Group’s financial institution bancassurance base,” the company says in a statement on September 23.

“The Nippon Life Group will continue to respond to a wide range of customer needs in the financial institution bancassurance market and strive to further expand our policyholders’ interest by increasing the profitability of group business,” it adds.

The acquisition is expected to be completed by November.

Tokyo-based Nippon Wealth had 3.19 trillion yen of assets under management as of March 2021. Parent company Nippon Life had 731.26 trillion yen of assets as of June 2021.