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
Building Resilience: ICA Aligns Floods Inquiry Plan 19 Dec 2024: Paige Estritori The Insurance Council of Australia (ICA) is strategically addressing the recommendations from recent inquiries into flood responses and code of practice in its latest updates. Acknowledging the variety and complexity of the suggestions, ICA supports 78 out of the total recommendations presented, tackling them in a staged and structured manner. - read more |
Major Acquisitions Shake Up the Australian Life Insurance Sector 18 Dec 2024: Paige Estritori In a significant move estimated at $13 billion, MLC Life Insurance and Resolution Life’s subsidiaries in Australia and New Zealand are set to merge. This development is part of an acquisition involving Nippon Life, a major player in the global insurance industry. - read more |
Sure Highlights Coverage Gaps in Cyclone Zones 17 Dec 2024: Paige Estritori An alarming gap in insurance coverage has been spotlighted by Queensland underwriting agency, Sure, as it drew attention to underinsurance among cyclone-susceptible areas. Their comparison of coverage across the state reveals stark contrasts that could have dire consequences for residents. - read more |
Term Life Insurance Fuels Customer Grievances 13 Dec 2024: Paige Estritori New insights from the Australian Securities and Investments Commission (ASIC) highlight that term life insurance sparked the most grievances among consumers last financial year. ASIC's newly released internal dispute resolution report indicates that 41% of the complaints were linked to term life policies. - read more |
Car Theft Case: Ignition Key Slip Leads to Unexpected Payout 13 Dec 2024: Paige Estritori A recent ruling has shed light on an insurance predicament where a policyholder’s vehicle was taken directly from outside his house while the ignition key remained in the car. Despite this oversight, the couple involved managed to secure compensation for the incident. - read more |
Health Fund Rebates 101: What Every Australian Needs to Know Exploring the realm of health insurance can be like navigating a labyrinth, replete with complex terms and varying policies. Among these, health fund rebates emerge as a crucial element, particularly for young Australians embarking on their journey of health coverage. Fund rebates can significantly lighten the financial burden, transforming the quest for health insurance from daunting to empowering. - read more
|
Hobby Farm Insurance: Things You Need To Know There are a lot of options when it comes to hobby farm insurance, and it can be difficult to know which one is right for you. In this article, we will discuss some of the most important things to consider when choosing hobby farm insurance. - read more
|
Income Protection Insurance: Balancing Cost with Adequate Coverage Income protection insurance is a critical safety net for anyone who relies on a steady paycheck to meet their financial obligations and maintain their lifestyle. It offers a replacement income if you are unable to work due to illness or injury, ensuring that your financial responsibilities can be met even when you're not at your earning best. In today's fast-paced world, income protection has become an essential consideration for the modern working individual. - read more
|
Understanding the Differences: Income Protection vs Total and Permanent Disability Insurance Income protection insurance is a type of policy that provides financial support to individuals who are unable to work due to an illness or injury. The insurance company will pay a portion of the policyholder's earnings, which can be used to cover everyday living expenses and bills. This type of insurance is different from total and permanent disability insurance (TPD) in a few key ways. - read more
|
Busting the Myth That Income Protection is Only for Physical Injuries To all the self-employed Australians! You're the backbone of our economy, recognized for your entrepreneurial spirit and abilities to navigate the unique challenges of managing your own business. Yet, with great freedom comes great responsibility, particularly when it comes to securing your financial well-being. - read more
|