Nippon Life Insurance to acquire MassMutual Life
March 6, 2018 by Jiji Press
TOKYO (Jiji Press) — Nippon Life Insurance Co. said Friday it will purchase an 85.1 percent stake in MassMutual Life Insurance Co., a Japanese unit of U.S. insurer MassMutual Financial Group, for some ¥104.2 billion.
The acquisition by the major Japanese life insurer is aimed at strengthening its 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 Co. 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 told a press conference.
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 ¥23.7 billion in core business profit.
