Nippon Life to Commit Further $1 Billion in Resolution Life, Following Strategic Partnership with Blackstone
January 24 2023 - 6:00AM
Business Wire
Resolution Life today announced that Nippon Life Insurance
Company (“Nippon Life”) has agreed to invest an additional
commitment of $1 billion in Resolution Life -- a leading global
life and annuity insurance consolidation business -- following the
recently announced strategic partnership between Resolution Life
and Blackstone.
Since 2019, Nippon Life has been the largest investor in
Resolution Life, supporting its growth through 8 transactions to a
company with $80bn+ of reserves and 3 million policies under
management across 3 international platforms. Having invested $650
million so far, this additional $1 billion commitment from Nippon
Life is expected to bring their cumulative investment to $1.65
billion.
Nippon Life believes that the strategic partnership between
Resolution Life and Blackstone will accelerate the growth and
development of Resolution Life. It solidifies Resolution Life’s
position as a leader in the multi-trillion-dollar global life and
annuity consolidation market by combining Resolution Life’s global
liability management platforms and Blackstone’s insurance asset
management capabilities.
Under this partnership, Blackstone has become Resolution Life’s
investment manager for certain key areas, including directly
originated assets across the private credit, real estate and
asset-based-finance markets. The company believes the addition of
investment and direct origination capabilities from Blackstone
serves as a new competitive advantage for Resolution Life and
enhance its ability to serve direct insurance partners in the
marketplace. 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, which is expected to increase to over $60
billion over the next six years.
Resolution Life and Blackstone plan to raise $3 billion of new
equity capital for Resolution Life – including this additional $1
billion investment from Nippon Life and a $500 million strategic
investment from Blackstone – which is expected to bring the
company’s overall equity capital base to c.$8 billion. The enhanced
capital base will allow Resolution Life to rapidly scale its global
growth path in a highly active acquisition market – continuing its
mission of being a global custodian to life insurance and annuity
policyholders. Nippon Life’s additional investment is subject to
regulatory approvals and anticipated to be made in the second half
of 2023.
Sir Clive Cowdery, Founder and Executive Chairman of Resolution
Life said “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.”
Gilles Dellaert, Global Head of Blackstone Insurance Solutions,
said: “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.”
Nippon Life, along with Blackstone, will continue to contribute
to accelerating growth and development in Resolution Life. As a
social mission of a life insurance company, Nippon Life is
continuously working to increase its profitability in attempts to
fulfil its responsibility in delivering coverage to customers as
well as offering a sense of security. Through this investment,
Nippon Life aims to increase interest of its policyholders.
Notes to Editors:
About Resolution Life Group
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 c.US$18 billion of equity in the
acquisition, reinsurance, consolidation and management of life
insurance companies. Together, these companies have served the
needs of c.13 million policyholders while managing over US$372
billion of assets. Resolution Life today has operations in Bermuda,
the U.K., the U.S., Australia and New Zealand, assisting the
restructuring of the primary life insurance industry globally.
Resolution Life provides a safe and reliable partner for insurers
as they restructure by:
- Focusing on existing customers, rather than seeking expansion
by new sales
- Delivering policyholder benefits in a secure, well capitalised
environment
- Returning capital to our institutional investors in the form of
a steady dividend yield
About Blackstone
Blackstone is the world’s largest alternative asset manager. We
seek to create positive economic impact and long-term value for our
investors, the companies we invest in, and the communities in which
we work. We do this by using extraordinary people and flexible
capital to help companies solve problems. Our $951 billion in
assets under management include investment vehicles focused on
private equity, real estate, public debt and equity,
infrastructure, life sciences, growth equity, opportunistic,
non-investment grade credit, real assets and secondary funds, all
on a global basis. Further information is available at
www.blackstone.com. Follow @blackstone on LinkedIn, Twitter, and
Instagram.
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version on businesswire.com: https://www.businesswire.com/news/home/20230123005815/en/
For Blackstone: Matt Anderson Matthew.Anderson@blackstone.com
(212) 390-2472
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