MLC Limited, the entity operating MLC Life Insurance, has confirmed it has received a combined capital boost of AUD $650 million from Nippon Life and the National Australia Bank (NAB) in December 2020.
MLC Life Insurance chief executive officer Rodney Cook said the additional capital would help the business to survive and thrive in the post-pandemic environment.
“[The] announcement demonstrates the emphatic support of our shareholders and their backing of our strategic direction. It provides real security of policyholder benefits, meaning we will continue to deliver on the promises we make to our customers and business partners,” Cook said.
“As a member of the Nippon Life Group of Companies, we benefit from its long-term view. This additional capital also supports our strategic goals. These include playing a larger role in the group insurance market, developing the industry's leading claims function, and making it more efficient for advisers and superannuation funds to provide insurance to their customers through the use of technology.”
Nippon Life said in a statement: “Nippon Life will work closely with MLC Life Insurance, carefully monitor developments, and continue to extend its support to the business.
“The additional capital is divided into two parts: an AUD $530 million ordinary equity issue to be contributed by Nippon Life and NAB (in line with their current ownership interest of 80% and 20%, respectively) and Tier 2 capital notes of AUD $120 million to be subscribed to by Nippon Life.”
