Fitch Ratings Keeps Resolution Life On RWP
Fitch Ratings has affirmed the ‘BBB’ Long-Term Issuer Default Ratings of Resolution Life Group Holdings Ltd. and RLGH Finance Bermuda, keeping them on Rating Watch Positive [RWP].
A statement from Fitch said, “Fitch Ratings has maintained the ‘BBB’ Long-Term Issuer Default Ratings [IDRs] of Resolution Life Group Holdings Ltd and RLGH Finance Bermuda [collectively, Resolution Life] on Rating Watch Positive [RWP]. Fitch has also maintained on RWP the ‘A-’ Insurer Financial Strength Ratings for Resolution Life’s core operating subsidiaries in North America, including Security Life of Denver Insurance Company [SLD] and Resolution Re.
Key Rating Drivers
“Pending Acquisition by Nippon Life: The RWP is driven by Nippon Life’s [A+ IFS/Positive] plan to acquire the remaining 77% of Resolution Life and become its sole owner. Nippon Life is currently the largest owner of Resolution Life at 23%. The transaction is expected to close in the second half of 2025 subject to customary regulatory approvals.
“The RWP reflects Fitch’s view of Resolution Life’s potential strategic importance to Nippon Life and the expectation of an uplift due to the stronger credit quality of its new sole owner. Nippon Life is the largest life insurance company in Japan and one of the largest life insurers globally. As a potentially ‘Very Important’ subsidiary to Nippon Life, Resolution Life’s ratings could receive up to two notches of uplift.
“The transaction reflects a broader strategic initiative by Nippon Life to expand its life insurance business outside of Japan. Nippon Life continues to target global growth with an aim of growing the proportion of its earnings outside of its domestic insurance business to 30% by 2035. Other acquisitions by Nippon Life include its 22% interest in Corebridge Financial, Inc. [IFS ratings of life insurance subsidiaries; A+/Stable].
“Fitch expects Resolution Life’s existing management team and operating strategies will largely remain in place following the close of the transaction. SLD and Resolution Re are expected to continue to focus on block and flow reinsurance transactions in the U.S., U.K. and Asia. Resolution Life Australasia is expected to merge with Nippon Life’s Australian business, MLC Life Insurance Company, to form a new primary life insurer, which will write new business and a be joint venture between Nippon Life and Resolution Life.
“We expect to resolve the RWP when the transaction is closed and we are able to determine the strategic importance of the related entities to Nippon Life.”
