Nippon Life Insurance Co. agreed to acquire a stake of about 85.1% in MassMutual Life Insurance Co. Ltd., or MassMutual Japan, from Massachusetts Mutual Life Insurance Co. unit MassMutual International LLC.
The purchase price is expected to be about ¥104.2 billion and the transaction will be funded through Nippon Life's cash on hand. The deal is expected to be completed around May or June.
Following the transaction, MassMutual Japan will become a subsidiary of Nippon Life, while MassMutual International will continue to hold a stake of around 14.9%.
Nippon Life said it believes the acquisition will help boost its profitability under its midterm management plan that began in April 2017.
The deal is subject to approval from Japan's Financial Services Agency.
As of March 1, US$1 was equivalent to ¥106.93.
