MassMutual International, Massachusetts Mutual Life Insurance Company’s international holding company, has announced that it will sell approximately 85.1% of MassMutual Japan to Nippon Life, Japan’s largest life insurer. MassMutual International will receive approximately $935 million and retain 14.9% ownership of MassMutual Japan. The deal is expected to close in the first half of the year.
“At MassMutual, one of our distinct competitive advantages has long been our diverse portfolio of businesses both at home and abroad, including our international insurance affiliates,” said Roger Crandall, chairman, president and CEO of MassMutual. “This exciting announcement represents a milestone moment for our company and its policyowners by realizing the significant value that has been delivered through the long-term success of MassMutual Japan, which we acquired nearly 17 years ago. Just as important, our continued partial ownership of MassMutual Japan gives us the ability to join together with Nippon Life – the preeminent mutual life insurer in Japan – and expand our participation in the growing Asian markets.”
MassMutual acquired Heiwa Life, which became MassMutual Japan, in 2001. The company also manages a wholly owned business in Hong Kong, MassMutual Asia, and a joint venture with State Grid Corporation in China as a minority shareholder in Yingda Taihe Life. In August, MassMutual entered into an agreement to sell MassMutual Asia to Yunfeng Financial Group and several Asia-based investors in exchange for cash and a stake in Yunfeng. That transaction is expected to close by the end of the year, MassMutual said.
