Wednesday, 26 August 2015

Nippon Life to buy Mitsui Life

Nippon Life Insurance Co., Japan’s biggest life insurer by assets plans to acquire Mitsui Life Insurance Co. Nippon Life plans to offer 300 Billion yen to 400 Billion yen for at least an 80% stake in Mitsui Life.

Buying Mitsui Life would contrast with a wave of multibillion dollar takeovers abroad by Japanese insurers as the country aging population limits growth prospects at home. Nippon Life plans to spend as much as 500 Billion yen on acquisitions including overseas insurers and asset managers.

Osaka based Nippon Life has been taking minority stakes in companies such as AIA Group Ltd, in Hong Kong, Post Advisory Group in the US, Indonesia Sequis Life and Reliance Group in India. Purchasing the company would help Nippon Life vie with Dai-ichi Life as Japan’s largest earner of insurance premium income. Nippon life got 5.37 Trillion yen from premiums in the year ended March, and Mitsui Life had 545 Billion yen.

Sumitomo Life Insurance Co. agreed this month to purchase Symetra Financial Corp for about $3.8 Billion. Tokio Marine Holdings Inc. agreed in June to acquire HCC Insurance Holdings Inc. for about $7.5 Billion and Dai-ichi Life struck a deal last year to buy protective Life Corp. for more than $5 Billion.

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