The two life insurers have announced a merger following the total acquisition of Resolution Life’s Australiasian subsidiary by Nippon Life Insurance Company.
On completion of the acquisition, MLC Life Insurance and Resolution Life Australasia will merge, forming one of Australia’s largest life insurance businesses, with the combined business to operate under the name Acenda.
In addition to acquiring 100 per cent of Resolution Life Australasia, Nippon Life has also acquired the remaining 20 per cent share of MLC Life that National Australia Bank (NAB) had retained since 2016, when Nippon initially acquired an 80 per cent stake in the insurer.
As a part of the transaction, NAB has agreed to provide, for a period of three years post completion, an amount of contingent Tier 2 capital support to Acenda.
In a statement, the group said Acenda will “focus on growth and remain open to new business”, leveraging MLC Life’s “best in claims” philosophy and Vivo health wellness offering in addition to Resolution’s digital solutions and retirement product suite in order to meet the shifting needs of its customers.
Speaking on the announcement, Nippon Life president Hiroshi Shimizu said this deal will allow the group to continue expanding its operations in the Australian market, providing quality products to its customers.
“This merger demonstrates our commitment to delivering innovative products, exceptional service, and leading customer experiences in the Australian life insurance market,” Shimizu said.
“As a mutual company owned by our policyholders, Nippon Life has always had a culture which puts customers at the heart of everything we do. Acenda, as part of the global Nippon Group, will continue to build on the ‘customer first’ philosophy innate to a mutual.
“As we combine to serve around 2 million customers, we believe our customer-oriented approach will continue to deliver on the trust Australians have placed in us to protect them and their families, and deliver on our promise to be there when they need us.”
MLC Life chair Peter Grey said this deal highlights Nippon Life’s continued commitment to the Australian life insurance market.
“This merger will ensure that our business’s great products and services will remain on sale and enable us to develop even better offerings to meet the future changing needs of our customers and partners,” Grey said.
“We look forward to a future of growth and innovation as Acenda. While MLC Life Insurance will have a new brand, and become part of a larger group, we will continue to build on our 138-year Australian heritage with the same commitments to our customers and partners. Together with Resolution Life Australasia we will continue to put customers at the heart of everything we do.
“In line with these commitments, our first priority is to ensure good experiences for customers and partners during the transition. We have commenced this work and will be communicating with our customers and partners directly and would like to thank them for their ongoing commitment to us.”
