Japan’s Nippon Life has announced an $US8.2 billion ($13 billion) acquisition that it says will consolidate its position in the Australian market.

It will take full ownership of Bermuda-based Resolution Life, which has operations in the UK and the US and operates here as Resolution Life Australasia after buying AMP’s life business in 2020.

Nippon already has a minority stake in the Bermudan group. As part of the new deal, its majority-owned MLC Life Insurance will merge with Resolution Life Australasia.

Nippon says the deal will “consolidate its top three position in the Australian life market and achieve further growth through enhanced cost-effectiveness and profitability by realisation of expected synergies”.

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

The combined Australian business will have a customer base of 2 million and will operate as Acenda.

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

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.