Dai-ichi Life beefs up capital base yet again

Strengthening its capital
base, Japanese insurer Dai-ichi Life has completed the issue of
$1.3bn in US dollar-denominated perpetual subordinated notes. The
notes carry a fixed interest rate of 7.25% per annum until July
2021 and a floating rate thereafter.

The note issue represents
Dai-ichi’s third major capital raising exercise in less than 12
months.

In April 2010, the insurer
listed on the Tokyo Stock Exchange following completion of an
initial public offer (IPO) in which it raised some
$11bn.

In October 2010, Dai-ichi
raised some $3.6bn through the issue perpetual subordinated loans
to a syndicate of unnamed participants.

Flexing its financial muscle,
in December 2010, Dai-ichi announced its intention to acquire the
71.04% of TOWER Australia Group it does not already own, in a deal
worth A$1.7bn ($1.7bn).

TOWER, Australia’s
third-largest life insurer, reported premium income of A$128.8m in
the first half of 2010.

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