Nippon Life acquires MassMutual's Japanese unit for $935m

Nippon Life Insurance Company is acquiring an 85.1 percent stake in MassMutual Life Insurance Company (MassMutual Japan), a Japanese unit of US insurer MassMutual International.

Under the terms of the transaction, which is expected to close in the first half of 2018, MassMutual International will receive approximately $935 million in cash (¥104.2 billion), while retaining approximately 14.9 percent ownership in MassMutual Japan. The company will remain headquartered in Tokyo.

MassMutual Japan, formerly known as Heiwa Life, was acquired by MassMutual in 2001.

"At MassMutual, one of our distinct competitive advantages has long been our diverse portfolio of businesses both at home and abroad, including our international insurance affiliates," said MassMutual CEO Roger Crandall. "This exciting announcement represents a milestone moment for our company and its policy owners by realizing the significant value that has been delivered through the long-term success of MassMutual Japan, which we acquired nearly 17 years ago. Just as important, our continued partial ownership of MassMutual Japan gives us the ability to join together with Nippon Life – the preeminent mutual life insurer life in Japan – and expand our participation in the growing Asian markets."

Eddie Ahmed, CEO of MassMutual International, added: "We are delighted to enter into this definitive agreement with Nippon Life. MassMutual Japan's current customers will benefit from the financial strength and backing of the country's largest life insurer, as well as gain access to an even broader range of high quality financial solutions. Additionally, the transaction furthers our international growth plans by capitalizing on global opportunities, through strategic partnerships and joint ventures."

In August 2017, MassMutual International entered into an agreement to sell MassMutual Asia to Yunfeng Financial Group with several Asia-based investors in exchange for cash and a 24.8 percent stake in Yunfeng Financial Group. The transaction is expected to close by the end of 2018.

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