By the Anton Bridge
TOKYO (Reuters) -Nippon Life insurance coverage (NS:) is within the ultimate levels of takeover negotiations with US life insurer Decision Life Group Holdings, Decision mentioned on Tuesday, in what would quantity to an $8.2 billion deal that highlights Japanese insurers' quest for development on the planet's largest economic system.
The acquisition, first reported by the enterprise every day, could be value round $8.2 billion, Decision mentioned in an announcement. If the deal goes by way of, it will likely be the biggest international acquisition ever by a Japanese insurer.
Nippon Life will purchase the shares it doesn’t already personal in Decision Life from Blackstone (NYSE:) and others to make it an entirely owned subsidiary within the second half of 2025 and pay for the acquisition with accessible money, it mentioned the Nikkei.
The deal is the most recent instance of main Japanese insurance coverage firms going abroad in quest of acquisitions in faster-growing markets, given restricted possibilities for enlargement at house, the place inhabitants is reducing and growing old.
Bermuda-based Decision Life confirmed it was in talks concerning the acquisition, however added these weren’t concluded and there was no certainty a transaction would go forward.
A Nippon Life spokesperson mentioned the corporate was in talks with Decision Life, however added it couldn’t disclose the topic of these discussions.
Blackstone declined to touch upon the Nikkei report
The acquisition could be Nippon Life's second main abroad funding this yr, following its $3.8 billion buy of a 20% stake in U.S. insurance coverage firm Corebridge Monetary in Could.
It has additionally sought to diversify its home enterprise, shopping for nursing care supplier Nichii Holdings for 1.4 billion in November final yr, nevertheless it lags behind different Japanese insurers in US acquisitions.
Property and casualty insurer Tokio Marine Holdings purchased specialty insurer HCC Insurance coverage Holdings for $7.5 billion in 2015, paid $2.7 billion in 2011 for Delphi Monetary, and purchased Philadelphia Consolidated for $4.7 billion. {dollars} in 2008.
Cross-border mergers and acquisitions involving Japanese firms have elevated this yr, pushed by modified pointers meant to encourage takeovers of Japanese firms.
Japanese firms additionally proceed to hunt development abroad as their home market shrinks.
Decision Life is a closed-book insurer that purchases present insurance coverage insurance policies from insurers in the US and different nations.
Nippon Life has acquired a 23% stake within the firm since 2019, spending a complete of $1.68 billion to this point, the Nikkei mentioned.
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