MassMutual International Enters Agreement to Sell 85.1 Percent of MassMutual Japan to Nippon Life

TOKYO and SPRINGFIELD, Mass., March 2, 2018 – MassMutual International LLC (MassMutual International)—Massachusetts Mutual Life Insurance Company’s (MassMutual) international insurance holding company—and Nippon Life Insurance Co. (Nippon Life) announced today they have entered into a transaction in which MassMutual International will sell approximately 85.1 percent of MassMutual Japan, its wholly owned life insurance and wealth management affiliate, to Nippon Life, the largest life insurer in Japan.

Under the terms of the transaction, which is expected to close in the first half of 2018, MassMutual International will receive approximately USD 935 million in cash (JPY 104.2. billion)1, while retaining approximately 14.9 percent ownership in MassMutual Japan.

“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 life in Japan – and expand our participation in the growing Asian markets.”

Eddie Ahmed, Chairman, President and CEO of MassMutual International, said, “We are delighted to enter into this definitive agreement with Nippon Life. MassMutual Japan’s current customers will benefit from the financial strength and backing of the country’s largest life insurer, as well as gain access to an even broader range of high quality financial solutions. Additionally, the transaction furthers our international growth plans by capitalizing on global opportunities, through strategic partnerships and joint ventures.”

MassMutual Japan, formerly known as Heiwa Life, was acquired by MassMutual in 2001. The company offers a robust portfolio of competitive, customer needs-based products, and continues to build its success on distribution relationships with the country’s largest security firms, many banks and independent brokerage agencies. The company will remain headquartered in Tokyo.

Nomura Securities International, Inc. served as MassMutual’s exclusive financial advisor on the transaction; MassMutual’s legal counsel was Jones Day.

In addition to MassMutual Japan, MassMutual International also manages a wholly owned business in Hong Kong – MassMutual Asia, with an additional office in Macau – and a successful joint venture with State Grid Corporation in the People’s Republic of China, as a minority shareholder in Yingda Taihe Life. In August 2017, MassMutual International entered into an agreement to sell MassMutual Asia to Yunfeng Financial Group and several Asia-based investors in exchange for cash and a 24.8% stake in Yunfeng Financial Group; the transaction is expected to close by the end of 2018.

1USD 935 million at an assumed JPY/USD exchange rate at the close of the transaction.

 

About MassMutual

MassMutual, headquartered in Springfield, Mass., is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. MassMutual offers a wide range of financial products and services, including life insurance, disability income insurance, long term care insurance, annuities, retirement plans and other employee benefits. The company’s major affiliates include asset management firms Barings LLC, and OppenheimerFunds, Inc.; as well as First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, LLC, Member FINRA and SIPC; and The MassMutual Trust Company, FSB. For more information, visit www.massmutual.com.

About Nippon Life Insurance Company

Nippon Life is Japan's leading private life insurer with revenues of approximately 5,236 billion Yen ($47.6 billion) and profits of over 685.5 billion Yen ($6.2 billion). Since its foundation in 1889, Nippon Life has been offering a wide range of products, including individual and group life and annuity policies through various distribution channels. Nippon Life also provides asset management business through subsidiaries and affiliates, meeting diversifying customers’ needs.  Nippon Life employs more than 70 thousand people and has operations in Japan, North America, Europe and Asia. For more information, please visit http://www.nissay.co.jp/english/.