MLC Life Insurance is to merge with Resolution Life Australasia forming what will be one of the nation’s largest life insurance businesses, Acenda.

The merge results from MLC Life’s parent, Nippon Life Insurance Company acquiring 100 per cent of Resolution Life. On completion of the transaction, MLC Life and Resolution Life Australasia will merge to create the new business.

Under the transaction, Nippon Life will also acquire the 20 per cent share of MLC Life Insurance that National Australia Bank (NAB) has retained since 2016, when Nippon Life acquired the 80 per cent stake in MLC Life Insurance.

As a part of the transaction, NAB has agreed to provide, for a period of three years post-completion, an amount of contingent Tier 2 capital support to Acenda.

Commenting on the merger, Hiroshi Shimizu, President of Nippon Life said: “We believe the acquisition of Resolution Life and the formation of Acenda demonstrates our commitment to working with exceptional businesses and teams to deliver innovative products and services.

“We are aligned with Resolution Life and our investment management partner Blackstone in continuing to deliver on the trust policyholders have placed in us to protect them and their families when they need us.”