If finalised, this would mark the largest foreign acquisition by a Japanese insurer to date, highlighting the growing trend of Japanese insurance companies expanding abroad to offset domestic market challenges. Resolution Life, a Bermuda-based closed-book insurer specialising in acquiring existing policies, confirmed the ongoing negotiations but stressed that no agreement has been reached yet. Nippon Life also acknowledged the talks but declined to disclose details.

The potential acquisition, first reported by the Nikkei, would involve Nippon Life purchasing all remaining shares of Resolution Life from stakeholders, including Blackstone, to make it a wholly owned subsidiary by the second half of 2025. The deal is expected to be financed entirely through Nippon Life’s cash reserves. Nippon Life has already built a 23% stake in Resolution Life since 2019, investing $1.68 billion over the years.

This move comes as Nippon Life seeks to strengthen its presence in the U.S. market, following its $3.8 billion acquisition of a 20% stake in Corebridge Financial earlier this year. Domestically, the company has also diversified by acquiring nursing care provider Nichii Holdings for $1.4 billion last year. Despite these efforts, Nippon Life has lagged behind competitors like Tokio Marine Holdings, which completed several high-profile U.S. acquisitions in recent years, including HCC Insurance Holdings for $7.5 billion in 2015 and Philadelphia Consolidated for $4.7 billion in 2008.

The deal reflects a broader surge in cross-border mergers and acquisitions involving Japanese companies, driven by revised guidelines encouraging takeovers and the need for growth amid Japan’s aging and shrinking population. If completed, the acquisition would reinforce Nippon Life’s strategy to capitalize on opportunities in the U.S., the world’s largest insurance market, as it navigates limited expansion prospects at home.