This article was updated after press time to reflect the Resolution Life deal closing.
Nippon Life now owns a large chunk of Corebridge Financial, and it could end up being a much bigger player in the U.S. annuity market.
The giant Japanese life insurer announced today that it has completed a previously announced purchase of a 21.6% equity stake in Corebridge from American International Group for $3.8 billion.
Nippon Life has also negotiated an agreement to pay $8.2 billion for control over Resolution Life, a Bermuda-based company that operates in the U.S. market by buying and managing large blocks of in-force life insurance policies and annuity contracts, from Blackstone.
Nippon Life already owns a 7.7% stake in Principal Financial Group and a minority stake in Resolution Life.
What it means: Nippon Life's investment in Corebridge Financial and the announcement of the Resolution Life deal show that the U.S. annuity market is continuing to attract new capital.
Nippon Life could also end up becoming a more visible participant in the U.S. annuity market.
The company said in the deal closing announcement that it wants to serve a broader range of customers.
"By establishing a business foundation in the U.S. life insurance market, which is expected to experience stable growth, we seek to ensure the stability of our business as well as attain increased benefits for our policyholders via further diversifying our group profit portfolio geographically," the company said.
Corebridge CEO Kevin Hogan posted a note welcoming Nippon Life's new role on the company's website and described Nippon Life as a strategic investor.
Other Japanese players in the U.S. life and annuity market include Meiji Yasuda Life, which owns Symetra, and Dai-ichi Life, which owns Protective Life.
