A subsidiary of Japanese insurance giant Daiichi Life Group has agreed to acquire New Zealand life insurer Fidelity Life Assurance in a deal worth $630 million, subject to regulatory approval and other completion conditions.
According to a report by 1News, Partners Group Holdings, which Daiichi Life Group owns, will purchase Fidelity Life, potentially expanding the Japanese company’s presence in New Zealand’s insurance sector.
The acquisition would also bring two of the country’s major life insurers under the same ownership, with Partners Life already owned by Partners Group. However, Fidelity Life and Partners Life will continue operating as separate businesses, and customers and advisers will not need to take any action.
According to 1News, in a joint statement, Fidelity Life and Partners said the transaction would "bring together the complementary strengths" of the two businesses.
Fidelity Life chief executive Campbell Mitchell said the company had built its reputation over more than five decades.
“Fidelity Life is a strong business built over more than 50 years on trusted relationships, deep local experience and a commitment to doing the right thing for New Zealanders," Mitchell said, 1News has quoted.
"The value we have created is grounded in our people, our customers and advisers, and the relationships we have built across the industry.
“There is still a process to work through but, throughout it, our focus remains firmly on supporting our customers, advisers, strategic partners and people,” as quoted by 1News.
Partners Life chief executive Michael Weston said the proposed acquisition could create opportunities for further investment while maintaining existing relationships and customer commitments.
“If approved, the opportunity is to build a strong and sustainable future that carries forward the relationships, experience and customer commitment people value today, while creating greater capacity to invest, adapt and support customers, advisers and partners over time,” Weston said, as quoted by 1News.
“It would also advance our purpose of building a brighter and more secure future for New Zealanders and reflect Daiichi Life Group’s confidence in, and commitment to, the New Zealand market and community," 1News has quoted.
Fidelity Life provides insurance coverage to more than 300,000 people and paid out $241.5 million in claims during the 2023/24 financial year, according to NZ Insurances.
Partners Life, meanwhile, provides cover to more than 340,000 people, according to information on the company’s website.
The transaction remains subject to regulatory approvals and other conditions before it can be completed, as reported by 1News.