Nip­pon Life plan­ning to buy Ja­panese ri­val Mit­sui Life

The Pak Banker - - COMPANIES/BOSS -

Nip­pon Life In­sur­ance Co., Ja­pan's big­gest life in­surer by as­sets, plans to ac­quire Mit­sui Life In­sur­ance Co. as early as in Septem­ber, ac­cord­ing to peo­ple with knowl­edge of the deal.

Nip­pon Life plans to of­fer 300 bil­lion yen ($2.5 bil­lion) to 400 bil­lion yen for at least an 80% stake in Mit­sui Life, said one of the peo­ple, who asked not to be named be­cause the in­for­ma­tion isn't public.

Buy­ing Mit­sui Life would con­trast with a wave of multi­bil­lion-dol­lar takeovers abroad by Ja­panese in­sur­ers as the coun­try's 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, ac­cord­ing to a three­year busi­ness plan re­leased in March.

Shinichiro Kon, a spokesman

for Nip­pon Life, con­firmed the com­pany is con­sid­er­ing ac­qui­si­tions as part of the plan, while de­clin­ing to be more spe­cific. Mit­sui Life spokesman Nori­hito Ka­makura said noth­ing has been de­cided.

The Nikkei news­pa­per re­ported on Nip­pon Life's plan to buy Mit­sui Life ear­lier on Wed­nes­day, with­out say­ing where it got the in­for­ma­tion. Nei­ther com­pany is pub­licly traded.

Shares of Ja­panese in­sur­ers rose. Dai­ichi Life In­sur­ance Co. jumped 4.6% at 2:15pm in Tokyo, and T&D Hold­ings Inc. gained 4.4%. The bench­mark Topix in­dex ad­vanced 3.4%, fol­low­ing its steep­est two-day drop since March 2011.

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.

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's Seq­uis Life and Re­liance Group in In­dia.

With ori­gins dat­ing back to 1914, Tokyo-based Mit­sui Life sells and un­der­writes in­di­vid­ual and group life in­sur­ance prod­ucts, prop­erty and ca­su­alty in­sur­ance, group pen­sion plans and an­nu­ities. It has 7.4 tril­lion yen in as­sets and more than 10,000 em­ploy­ees, ac­cord­ing to its web­site.

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. That com­pares with Dai-Ichi Life's 5.43 tril­lion yen.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.