Resolution Life swallowed up by Nippon Life; What does it mean for the Asteron sale?

Under the proposed deal Resolution Life’s Australian and New Zealand subsidiary, Resolution Life Australasia, will combine with Nippon Life owned MLC Life Insurance in Australia to form a merged group that will create one of Australasia’s largest life insurers by market share.

In a statement Nippon Life and Resolution Life say they remain committed to the New Zealand market, and the agreement with Suncorp Group to acquire its New Zealand Life Insurance company, Asteron Life New Zealand.

After the deal is completed Asteron Life will remain open to new business and continue to operate under the Asteron Life brand and as a standalone New Zealand licenced and incorporated life insurance company.

In New Zealand, the Resolution Life entity intends to rebrand to Acenda, and will continue to operate alongside the Asteron Life brand. These two brands in will leverage the increased scale and combined capabilities of Resolution Life, Asteron Life and MLC Life Insurance to deliver market leading solutions for customers, advisers, partners and shareholders.

Resolution Life Australasia chief executive Tim Tez says “New Zealand remains an important market for both Resolution Life Australasia and Nippon Life. Today’s announcement will not impact our focus on completing the acquisition of Asteron Life and our support of the business’ current strategic growth agenda."

"Asteron Life will remain open to new business and will form an important part of our Australasian footprint which will continue to build on our “customer first” philosophy. The business will ultimately benefit from the combined skills and investment capabilities that the joint venture will bring.

“We remain committed to ensuring a seamless integration process that prioritises a good experience for policyholders and advisers once the transaction completes.”

Resolution Life chairman and founder Sir Clive Cowdery, says, "We have a unique opportunity to leverage the investment by Nippon Life and the capabilities of Resolution Life so we can be a top three player in the Australasian life insurance industry and a clear market-leading choice.”

“This announcement further demonstrates Nippon Life’s commitment to growing internationally and the importance of the New Zealand market in that strategy.”