RLGH FINANCE BERMUDA LTD
Statement regarding Resolution Life
For Immediate
Release
THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION
Resolution Life announces acquisition by Nippon
Life
· Resolution Life announces the acquisition of 100% of its
shares by Nippon Life at a valuation of $10.6 billion
· The
transaction will accelerate growth for both Resolution Life and
Nippon Life in the highly active, multi-trillion-dollar global life
and annuity consolidation sector
· Resolution Life,
which comprises Resolution Re, Resolution Life US and Resolution
Life Australasia will retain the Resolution brand
· Resolution Life
Australasia and Nippon Life's Australian company, MLC, will be
merged to form Acenda
· Blackstone will continue to be Resolution Life's investment
manager across private credit and other key areas
Resolution Life, a global life insurance group
focusing on the acquisition and ongoing management of portfolios of
life insurance policies, today announces that Nippon Life Insurance
Company ("Nippon Life") has agreed to acquire 100% of the
company.
Nippon Life will consolidate its ownership
interest by paying $8.2 billion to acquire the remaining shares
from Resolution Life's investment limited partnership, valuing
Resolution Life at $10.6 billion, with shareholders
also retaining final dividends before
completion.
Following the acquisition, Resolution Life's
institutional business in the US, the UK, Bermuda and Singapore
will become a subsidiary of Nippon Life, creating a new division
that complements Nippon Life's Japanese life business as well as
its international asset management and retail businesses.
Resolution Life will continue to be led by Clive Cowdery as
Chairman and CEO and Resolution Life Group Holdings Ltd will remain
the primary regulated entity.
Resolution Life's Australasian business will be
combined with Nippon Life's Australian company, MLC, to form
Acenda, a new primary life
insurer open to new business, which will be run as a joint venture
between Nippon Life and Resolution Life.
The transaction completes a
partnership that began in 2019 when Nippon Life first invested in
Resolution Life. Since then, it has remained the company's largest
investor and supported the growth of Resolution Life into a company
with over $85bn of reserves and over 4m policies.
For Resolution Life, this
transaction enables the company to secure its position as a leader
in the multi-trillion-dollar global life and annuity consolidation
sector. Having a single well-capitalised parent will enable
Resolution Life to accelerate its growth and continue to serve the
needs of policyholders and the broader life insurance
industry.
For Nippon Life, this transaction is
a further step towards achieving their stated medium-term plan to
grow their international business and deliver long-term growth and
stable dividends from overseas markets. It will enhance Nippon
Life's product offering as well as expanding the application of
asset management, liability management and digital skills by
leveraging Resolution Life's existing capabilities, including a
highly experienced global team.
Resolution Life will continue its
mission of being a global custodian to the life insurance and
annuity industry by providing capital for growth, removing stranded
costs and mitigating long-term risks so that the industry can
continue to respond to the needs of policyholders.
Resolution Life is regulated by the
Bermuda Monetary Authority with a strong group capital position,
high solvency ratios and investment grade ratings.
Blackstone will continue its
relationship with Resolution Life as the company's investment
manager for directly originated assets across the private credit,
real estate and asset-based-finance markets - reflecting the
significant value Blackstone's origination platform has provided to
the business and its policyholders. Resolution Life will also
continue as Blackstone's strategic partner in the life and annuity
consolidation sector globally.
Hiroshi Shimizu, President of Nippon Life
said,
"As a mutual company owned by our policyholders, Nippon Life
has always had a culture which puts customers at the heart of
everything we do. We believe the acquisition of Resolution Life and
the formation of Acenda demonstrates our commitment to working with
exceptional businesses and teams to deliver innovative products and
services. We are aligned with Resolution Life and our
investment management partner Blackstone in continuing to deliver
on the trust policyholders have placed in us to protect them and
their families when they need us."
Sir
Clive Cowdery, Founder and Executive Chairman of Resolution
Life said,
"For 22 years, Resolution Life and prior Resolution companies
have raised our capital from institutional investors and the public
markets. I am delighted that we are now going forward under the
single ownership and capital support of Nippon Life, an institution
I admire and respect. There is a strong foundation of shared
values, clarity of vision and breadth of capabilities across our
organisations. Combining Resolution Life's strengths, the
investment management expertise of our partners at Blackstone and a
well-funded parent gives us the opportunity to accelerate our
growth and serve the needs of
policyholders into the
decades ahead."
Gilles Dellaert, Global Head of Blackstone Credit and
Insurance (BXCI) said,
"We are very pleased with this outcome for Resolution Life's
policyholders and investors. Clive Cowdery has built a
tremendous insurance platform, and we believe that this expanded
partnership with the world-class team at Nippon Life will help
drive its accelerated global growth. We look forward to continuing
to deliver the benefits of Blackstone's leading private credit and
asset origination capabilities to Resolution Life and its
policyholders in this next chapter with Nippon
Life."
The transaction is subject to
regulatory approvals and anticipated to be completed in H2
2025. The person responsible for arranging
the release of this announcement on behalf of the company is Claire
Singleton, General Counsel.
ENDS
Notes to
Editors:
About Nippon Life
Founded in 1889, Nippon Life is the core
company of the Nippon Life group, which consists of multiple group
companies operating life insurance and asset management businesses
in the Asia-Pacific region and globally and is the largest private
asset owner in Japan. With over 70,000 employees, Nippon Life has
15 million customers and over ¥87,000 Billion in total
assets.
For more information on Nippon Life,
visit www.nissay.co.jp/global.
About Blackstone
Blackstone is the world's largest
alternative asset manager. We seek to deliver compelling returns for institutional and individual
investors by strengthening the companies in which we invest. Our
more than $1.1 trillion in assets under management include global
investment strategies focused on real estate, private equity,
infrastructure, life sciences, growth equity, credit, real assets,
secondaries and hedge funds. Further information is available
at www.blackstone.com.
Follow @blackstone on LinkedIn, X
(Twitter),
and Instagram.
About Resolution Life
Resolution Life is a global life insurance
group focusing on the acquisition and management of portfolios of
life insurance policies. Since 2003 to date, prior
Resolution entities together with Resolution Life have deployed
approximately $19 billion of equity in the acquisition,
reinsurance, consolidation and management of life insurance
companies. Together, these companies have served the needs of
over 13 million policyholders while managing approximately $385
billion of assets. Resolution Life today has
operations in Bermuda, the U.K., the U.S., Australia, New Zealand
and Singapore assisting the restructuring of the primary life
insurance industry globally. Resolution Life provides a safe and
reliable partner for insurers by:
· Primarily focusing on existing customers, with selective new
business growth in strategic markets
· Delivering policyholder benefits in a secure, well capitalised
environment
· Returning capital to our institutional investors in the form
of a steady dividend yield
www.resolutionlife.com
About Resolution
Life Australasia
Resolution Life Australasia has
c.A$29 billion in AUM and is committed to servicing its existing
one million customers across Australia and New Zealand by providing
them with competitive premiums, quality investment management,
great customer service and efficient claims management. Resolution
Life Australasia's growth is predominantly through the acquisition
of in-force portfolios of life insurance policies as well as
remaining open to growing new business in select strategic markets.
As part of the transaction announced today Resolution Life
Australasia will be combined with Nippon
Life's Australian business, MLC, to form a new primary life insurer
open to new business.
· For more
information on the transaction please click here
Resolution
Life Australasia
· For more
information on Resolution Life Australia, visit
www.resolutionlife.com.au
Advisors
Resolution Life is represented by
Goldman Sachs & Co. LLC as financial advisor and Debevoise
& Plimpton LLP, Herbert Smith Freehills LLP and Kirkland &
Ellis LLP as legal counsel in connection with these
transactions.
Nippon Life is represented by J.P.
Morgan and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. as
financial advisors and Nishimura & Asahi, Mayer Brown LLP, ASW
Law Limited, Ashurst, Bell Gully and DLA Piper as legal counsel in
connection with these transactions.
Media
Enquiries:
Temple Bar Advisory (US / UK / RoW)
Alex Child-Villiers / Sam
Livingstone / Alistair de Kare-Silver / Juliette Packard
+44 (0)20 7183 1190 /
resolution@templebaradvisory.com
SEC Newgate
(Australasia)
Erica
Borgelt
Tel: +61 (0) 413 732 951 /
erica.borgelt@secnewgate.com.au
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