Nippon Life expands in US with $8.2 billion acquisition of Resolution Life

Japanese insurer Nippon Life has announced a record $8.2 billion acquisition of Resolution Life Group Holdings, expanding its presence in the US market. This move highlights the challenges faced by Japanese insurers in finding growth domestically. Japan's life insurance market is saturated, with nearly 90% of households covered. The industry has struggled with low returns and a declining population, prompting insurers to seek opportunities abroad, particularly in the larger and more profitable US market. Other Japanese insurers, like Dai-ichi Life and Sumitomo Life, have also pursued US acquisitions. These strategies have led to improved stock performance, but Japanese insurers still trade at a discount compared to their US counterparts.