Nationwide, a Columbus-based U.S. diversified financial services and insurance company, has entered into an agreement with mutual life insurance company MassMutual to reinsure a group of fixed universal life policies with a total face value of nearly $16 billion.
The policies cover more than 30,000 policyholders and will add $6 billion to Nationwide Financial’s reserves.
The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions and regulatory approval requirements.
Nationwide expects to take on the additional business without increasing staff, while MassMutual will continue to administer the policies and continue to serve as a point of contact for policyholders.
Additionally, Nationwide has appointed global alternative asset manager Barings, which is also a subsidiary of MassMutual, as one of the investment managers for the block. Barings will also manage additional general account assets for banks nationwide.
Nationwide CEO Kirt Walker commented: “This agreement represents a tremendous opportunity to leverage our significant capital strength and grow our life insurance business, which will be designated the third largest life insurance underwriter by 2025. The combination of two strong brands allows us to protect more Americans with life insurance.”
Nationwide president Craig Hawley added: “This transaction marks a further step forward for our life insurance business, which has become a strong and stable industry leader with a rich portfolio of protection solutions.”
Mary Jane Fortin, chief financial officer of MassMutual Financial Services, said: “This transaction creates capital and other economic benefits that support our continued investment in long-term growth as we deliver value to policyholders and seek to help more people secure their futures and protect their loved ones. We are pleased to enter into this mutually beneficial agreement with Nationwide as a strategic partner.”
In this transaction, Wells Fargo served as the exclusive financial advisor to MassMutual, with Skadden LLP serving as legal advisor and Oliver Wyman serving as actuarial advisor. Sidley Austin LLP served as Nationwide’s legal advisor on this transaction.
