Resolution secures another $1 billion from Nippon Life

Nippon Life, the largest Japanese life insurer by revenue, will commit a further $1 billion to Bermuda’s Resolution Life, it has announced.

Nippon Life is already the largest investor in the life and annuity insurance consolidation business, having invested $650 million to date. It has supported Resolution’s growth through eight transactions to a company with over $80bn reserves and 3 million policies under management.

The news follows Resolution’s announcement in October of a strategic partnership with Blackstone, the world’s largest alternative asset manager. According to Nippon Life, this will accelerate the company’s growth and solidifies its position as a leader in the global life and annuity consolidation market. Under the partnership, Blackstone is Resolution Life’s investment manager for critical areas, including directly originated assets across the private credit, real estate and asset-based-finance markets.

Blackstone will manage an initial target of up to $25 billion of Resolution Life’s existing private assets in the first year of the partnership. It is expected to increase to over $60 billion over the next six years. Resolution Life and Blackstone also plan to raise $3 billion of new equity capital for Resolution Life – including the additional $1 billion investment from Nippon Life and a $500 million strategic investment from Blackstone. It aims to bring the company’s overall equity capital base to about $8 billion.

“I am honoured to have the continued partnership 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,” said Sir Clive Cowdery, Resolution Life founder and executive chairman.

Gilles Dellaert, global head of Blackstone insurance solutions, added: “We thank Nippon Life – a leader in global life insurance – for their partnership as we work with Clive and his team to help drive the continued growth of Resolution Life. We believe Blackstone’s private credit and asset origination capabilities can help deliver increased value to investors and greater financial security to policyholders in the years ahead.”