MLC Life Insurance will merge with Resolution Life’s Australian and New Zealand subsidiary as part of an $US8.2 billion ($13 billion) acquisition.

Under the deal, MLC majority owner Nippon Life will take full ownership of Bermuda-based Resolution Life, which operates here as Resolution Life Australasia after buying AMP’s life business in 2020.

Japan-based Nippon already has a minority stake in the Bermuda group, which also has operations in the UK and US.

“On completion of this transaction, MLC Life Insurance and Resolution Life’s Australasian subsidiary, Resolution Life Australasia, will merge to create one of Australia’s largest life insurance businesses, to be known as Acenda,” MLC said in a statement today.

The transaction is expected to close in the second half of next year, pending regulatory clearance.

In a separate deal, Nippon Life will acquire NAB’s 20% stake in MLC for $500 million, to take full control of the insurer. Its current 80% stake was bought from NAB in 2016.

That deal is expected to be executed on the business day following completion of the Resolution acquisition.

“The Resolution Life acquisition provides an appropriate opportunity for NAB to sell its remaining stake in MLC Life Insurance,” the bank said.

Nippon Life says the combined Australian business will have a customer base of about 2 million.

“Acenda, as part of the global Nippon Group, will continue to build on the ‘customer first’ philosophy,” Nippon Life president Hiroshi Shimizu said.

MLC Life Insurance chair Peter Grey says the merger will support development of “even better offerings to meet the future changing needs of our customers and partners. We look forward to a future of growth and innovation as Acenda.”

Resolution Life chairman and founder Clive Cowdery says today’s announcement is an “exciting development” for the Australian life market.

“We have a unique opportunity to leverage the investment by Nippon Life and the capabilities of Resolution Life so we can be a top three player in the Australasian life insurance industry and a clear market-leading choice,” he said.

MLC Life Insurance will start adopting the Acenda brand immediately and Resolution Life Australasia will transition to it after the transaction.

Resolution Life's $NZ410 million ($372 million) purchase of New Zealand insurer Asteron Life from Suncorp, announced earlier this year, is still going ahead as planned.

"Nippon Life and Resolution Life remain committed to the New Zealand market, and the agreement with Suncorp Group to acquire its New Zealand Life Insurance company, Asteron Life New Zealand (Asteron Life) announced in April 2024," Resolution Life said.
 
"Once acquired, and subject to regulatory approval, Asteron Life will remain open to new business and continue to operate under the Asteron Life brand and as a standalone NZ licensed and incorporated life insurance company."
 

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