Nippon Life acquires 20% stake in Corebridge Financial for USD 3.84bn

Nippon Life Insurance has reached an agreement with Corebridge Financial and its parent company, American International Group to acquire a 20% equity interest in Corebridge. Nippon Life establishes a strategic partnership with these two companies through this acquisition to further enhance the value of Corebridge.

The acquisition amount is expected to be approximately USD 3.84bn (approximately JPY 595bn), which will be funded by cash on hand. The transaction is subject to procedures related to regulatory approval as well as notification of the relevant authorities in relation to the acquisition.

Background and Aims of the interest acquisition

Nippon Life has established a long-term corporate vision to become “a corporate group offering various types of reassurance across diverse areas centering around life insurance, spanning out to asset management, healthcare, nursing care, childcare and others as a provider of multidimensional peace of mind”. Targeting 2035, Nippon Life will endeavor to double Group Core Operating Profit and increase policy holder dividends.

In the medium-term business plan (2024–2026) starting this fiscal year, Nippon Life has set expanding its global business as one of its strategic directions. Under this direction, Nippon Life plans to realize expansion in its global business through growth in existing businesses and new business investments. Nippon Life has continuously sought opportunities to invest in growing U.S. life insurance and retirement companies in an effort to establish a business foundation in the U.S. market, the largest market in the world that is also expected to grow steadily in the future.

Corebridge is one of the largest providers of retirement solutions and insurance products in the U.S. and offers an extensive set of products and services through market-leading Individual Retirement, Group Retirement, Life Insurance and Institutional Markets businesses, to meet a wide variety of customer needs. Corebridge has maintained a strong presence, especially in the individual retirement market, for an extended period of time. By investing in Corebridge, Nippon Life aims to further grow Corebridge’s business, and to establish a business foundation and network in the U.S. life insurance and retirement markets. With Corebridge, we will deliver insurance and peace of mind to more customers overseas. Moreover, this will further accelerate Nippon Life’s geographical diversification of profit source which ensures Nippon Life’s long-term business as well as benefits policyholders.

Please follow us to read more about Finance & FinTech in Japan, like hundreds of readers do every day. We invite you to also register for our short weekly digest, the “Japan FinTech Observer”, on Medium or on LinkedIn. Our global Finance & FinTech Podcast, “eXponential Finance” is also available through its own LinkedIn newsletter, or via our Podcast Page.

Should you live in Tokyo, or just pass through, please also join our meetup. In any case, our YouTube channel and LinkedIn page are there for you as well.