We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
Major Acquisitions Shake Up the Australian Life Insurance Sector
Major Acquisitions Shake Up the Australian Life Insurance Sector
Nippon Life, based in Japan, aims to gain full ownership of Bermuda-headquartered Resolution Life. This entity, known locally as Resolution Life Australasia, found its place in the Australian market after acquiring the AMP life business in 2020. Nippon Life already has a minority share in the Bermuda operations, extending its reach into the UK and US markets.
The newly formed company, Acenda, promises to be a significant force in Australia's insurance landscape. MLC predicated in a statement, "Acenda will therefore become one of Australia’s largest life insurance corporations." This transaction anticipates completion in the latter half of the upcoming year, contingent on receiving regulatory approvals.
An additional agreement will see Nippon Life purchasing NAB’s remaining 20% stake in MLC for $500 million. NAB had initially sold the majority 80% of its shares to Nippon Life in 2016. The closure of this transaction is tied to the successful completion of Resolution Life’s acquisition deal.
"The Resolution Life acquisition creates a timely opportunity for NAB to divest its residual stake in MLC Life Insurance," the bank commented regarding its strategic realignment.
Post-acquisition, Nippon Life’s expanded Australian enterprise is projected to serve approximately two million customers. Hiroshi Shimizu, Nippon Life’s president, underscored the focus on customer satisfaction by stating, "Acenda, integrated within the global Nippon Group, will strongly adhere to its ‘customer first’ ethos."
Joining these sentiments, MLC Life Insurance’s chair, Peter Grey, highlighted the benefits of the merger, suggesting it would enable "the development of superior products to satisfy the evolving demands of our clients and collaborators. We anticipate fostering growth and innovation under the Acenda brand."
Resolution Life's chairman Clive Cowdery praised this merger as a groundbreaking advancement for Australia’s life insurance industry. “With Nippon Life’s substantial investment and Resolution Life’s expertise, we aim to position ourselves among the top three leaders in the Australasian market,” Cowdery elaborated.
The rebranding to Acenda is set to begin with MLC Life Insurance, followed by Resolution Life Australasia once the merger is finalized. Meanwhile, Resolution Life’s acquisition of New Zealand’s Asteron Life from Suncorp, announced earlier in 2024 for $372 million, will continue as planned.
Resolution Life stated, "The New Zealand market remains a strategic focus, following the agreement with Suncorp Group’s Asteron Life New Zealand acquisition. Pending regulatory consent, Asteron Life will remain open for business, retaining its established brand identity and independent operation."
These developments were originally reported by Insurance News Magazine and highlight dynamic shifts in the insurance landscape.
Published:Wednesday, 18th Dec 2024
Source: Paige Estritori
Share this news item:
| Building Resilience: ICA Aligns Floods Inquiry Plan 19 Dec 2024: Paige Estritori The Insurance Council of Australia (ICA) is strategically addressing the recommendations from recent inquiries into flood responses and code of practice in its latest updates. Acknowledging the variety and complexity of the suggestions, ICA supports 78 out of the total recommendations presented, tackling them in a staged and structured manner. - read more |
| Major Acquisitions Shake Up the Australian Life Insurance Sector 18 Dec 2024: Paige Estritori In a significant move estimated at $13 billion, MLC Life Insurance and Resolution Life’s subsidiaries in Australia and New Zealand are set to merge. This development is part of an acquisition involving Nippon Life, a major player in the global insurance industry. - read more |
| Sure Highlights Coverage Gaps in Cyclone Zones 17 Dec 2024: Paige Estritori An alarming gap in insurance coverage has been spotlighted by Queensland underwriting agency, Sure, as it drew attention to underinsurance among cyclone-susceptible areas. Their comparison of coverage across the state reveals stark contrasts that could have dire consequences for residents. - read more |
| Term Life Insurance Fuels Customer Grievances 13 Dec 2024: Paige Estritori New insights from the Australian Securities and Investments Commission (ASIC) highlight that term life insurance sparked the most grievances among consumers last financial year. ASIC's newly released internal dispute resolution report indicates that 41% of the complaints were linked to term life policies. - read more |
| Car Theft Case: Ignition Key Slip Leads to Unexpected Payout 13 Dec 2024: Paige Estritori A recent ruling has shed light on an insurance predicament where a policyholder’s vehicle was taken directly from outside his house while the ignition key remained in the car. Despite this oversight, the couple involved managed to secure compensation for the incident. - read more |
| Why Every Australian Entrepreneur Needs Income Protection Insurance Entrepreneurship in Australia - a landscape overview: The allure of entrepreneurship in Australia is undeniable, with the promise of innovation, personal autonomy, and potentially limitless earnings. However, the path of an entrepreneur is often unpaved and unpredictable. Without the safety nets traditionally provided by corporate employment, Australian entrepreneurs must proactively safeguard their personal finances against the capricious winds of business fortune. - read more
|
| Breaking Down Common Income Protection Insurance Terms Income protection insurance is designed to provide financial support if you're unable to work due to illness or injury. It aims to replace a portion of your income during such times, ensuring you can maintain your lifestyle and meet financial obligations. - read more
|
| Comparing Income Protection Policies: What Australians Should Look For Income protection insurance serves as a financial safety net for countless Australians, offering a replacement income when unforeseen circumstances such as illness or injury impede their ability to earn. For the self-employed and entrepreneurs who may not have the safety nets offered by corporate employment, such protection is particularly important. - read more
|
| Navigating Pre-existing Conditions in Income Protection Insurance Income protection insurance is a safety net that many Australians rely on to secure their financial future in the event of illness or injury preventing them from working. It's a type of policy that provides a replacement income if you are unable to earn your regular income due to a health-related absence from the workplace. - read more
|
| Understanding the Process: A Beginner's Guide to Income Insurance Claims Income insurance, an often-overlooked component of financial security, is gaining traction among Australia's burgeoning self-employed population. In an economy where traditional employment is no longer the sole path to success, this form of insurance has become a cornerstone for proactive financial planning. Touted as a safety net, it ensures that personal livelihoods and business operations remain secure in the face of adversity. - read more
|
|
|
Comparing Income Protection Policies: What Australians Should Look For Income protection insurance serves as a financial safety net for countless Australians, offering a replacement income when unforeseen circumstances such as illness or injury impede their ability to earn. For the self-employed and entrepreneurs who may not have the safety nets offered by corporate employment, such protection is particularly important. - read more
|
|
|
Navigating Pre-existing Conditions in Income Protection Insurance Income protection insurance is a safety net that many Australians rely on to secure their financial future in the event of illness or injury preventing them from working. It's a type of policy that provides a replacement income if you are unable to earn your regular income due to a health-related absence from the workplace. - read more
|
|
Income Protection Insurance: Balancing Cost with Adequate Coverage Income protection insurance is a critical safety net for anyone who relies on a steady paycheck to meet their financial obligations and maintain their lifestyle. It offers a replacement income if you are unable to work due to illness or injury, ensuring that your financial responsibilities can be met even when you're not at your earning best. In today's fast-paced world, income protection has become an essential consideration for the modern working individual. - read more
|
|
Income Insurance: The Safety Net for Your Financial Goals in Australia Financial security is pivotal for anyone striving to meet their life goals, be it owning a home, educating children, or ensuring a comfortable retirement. In Australia, where uncertainties can disrupt our best laid-out financial plans, having a safety net in place is essential. Income insurance offers just that—protection against the unforeseen events that could impact your income earning abilities. - read more
|
|
Understanding Income Protection Insurance: A Comprehensive Guide for Australians Income protection insurance is an essential component of financial security for Australians, designed to provide a safety net by replacing a portion of your income if you're unable to work due to illness or injury. Despite its critical role in safeguarding livelihoods, it's often overlooked in personal financial planning. - read more
|