Nippon Life to Acquire MassMutual Life
Nippon Life Insurance said Friday it will purchase an 85.1% stake in MassMutual Life, the Japanese unit of US insurer MassMutual, for ~¥104.2B. The acquisition is aimed at strengthening Nippon’s insurance sales through banks and securities houses, a field in which MassMutual Life is strong.
The transaction, which is expected to be completed around May or June, will represent the first realignment move in the Japanese life insurance industry since Nippon Life bought Mitsui Life Insurance in 2015.
Nippon Life is considering changing MassMutual Life’s name following a certain period.
“This is the first step for further strengthening our business” – Nippon Life Managing Executive Officer Yuji Mikasa . He also indicated hopes for potential cooperation with MassMutual Financial Group, which will continue owning the remaining 14.9 percent of MassMutual Life.
MassMutual Life mainly sells annuity and whole-life insurance products. In fiscal 2016, it earned ¥322.9 billion in premium income and ¥23.7B in core business profit.