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Insurance

MLC Life and Resolution Life Australasia to merge

MLC Life Insurance and Resolution Life Australasia are set to merge, creating one of Australia's largest life insurance businesses.

Nippon Life Insurance - MLC's parent company - announced it will acquire 100% of Resolution Life.

As a result, MLC Life and Resolution Life Australasia will be combined, creating a new company to be known as Acenda.

Serving around two million customers and partners, Acenda will focus on growth and remain open to new business, Nippon Life said. The combined customer base will offer scale and stability to ensure Acenda will be able to meet the evolving needs of Australians.

Nippon Life will also acquire the 20% share of MLC Life Insurance that National Australia Bank (NAB) has retained since 2016, when Nippon Life acquired the 80% stake in MLC Life Insurance.

As a part of the transaction, NAB has agreed to provide, for a period of three years post completion, an amount of contingent Tier 2 capital support to Acenda.

Nippon Life president Hiroshi Shimizu said the deal aligns with the company's intentions to continue to grow in the Australian life insurance industry and emphasised the merger's benefits for Australian consumers.

"This merger demonstrates our commitment to delivering innovative products, exceptional service, and leading customer experiences in the Australian life insurance market," Shimizu said.

"As a mutual company owned by our policyholders, Nippon Life has always had a culture which puts customers at the heart of everything we do. Acenda, as part of the global Nippon Group, will continue to build on the 'customer first' philosophy innate to a mutual.

"As we combine to serve around two million customers, we believe our customer-oriented approach will continue to deliver on the trust Australians have placed in us to protect them and their families and deliver on our promise to be there when they need us."

MLC Life chair Peter Grey said the investment shows the continued commitment of Nippon Life to the Australian life insurance market.

"This merger will ensure that our business' great products and services will remain on sale and enable us to develop even better offerings to meet the future changing needs of our customers and partners," Grey said.

"We look forward to a future of growth and innovation as Acenda. While MLC Life Insurance will have a new brand, and become part of a larger group, we will continue to build on our 138-year Australian heritage with the same commitments to our customers and partners. Together with Resolution Life Australasia we will continue to put customers at the heart of everything we do."

Grey said MLC Life's first priority is towards a positive experience for customers and partners during the transition.

"We have commenced this work and will be communicating with our customers and partners directly and would like to thank them for their ongoing commitment to us," Grey said.

Resolution Life Australasia was established in 2020, following Resolution Life's acquisition of AMP Life.

Resolution Life founder and chair Clive Cowdery said the acquisition was an exciting development.

"We have a unique opportunity to leverage the investment by Nippon Life and the capabilities of Resolution Life so we can be a top three player in the Australasian life insurance industry and a clear market-leading choice," Cowdery said.

Further commenting on the merger, Resolution Life chief executive Tim Tez said: "As we combine Resolution Life Australasia and MLC Life Insurance, our priority will be our policyholders, people, and partners. All integration efforts will be carefully designed to prioritise a smooth customer experience."

MLC Life Insurance will begin adopting the Acenda brand immediately, and Resolution Life Australasia will transition to Acenda after the transaction's completion. Until completion, the two businesses will continue to operate separately.

The transaction is set to be completed in the second half of the 2025 calendar year, subject to regulatory approvals.

Read more: AcendaResolution Life AustralasiaMLC Life InsuranceClive CowderyHiroshi ShimizuNational Australia BankNippon Life InsurancePeter GreyTim Tez