Japan’s Nippon Life Insurance is looking to double its core operating profit to approximately Y1.4trn by the mid-2030s, reported Nikkei Asia.
The company’s three-year business plan, starting in April, sets a profit target of Y860bn for FY2026, a 20% increase from the average between FY2021 and FY2023.
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Its long-term vision through FY2035 includes a significant focus on overseas operations, with more than Y2trn earmarked for strategic investments.
The publication cited Nippon Life President Hiroshi Shimizu, who stated: “We expect about Y1trn from the domestic insurance business and about Y400bn from segments apart from domestic insurance, mainly overseas.”
Besides, Nippon Life’s strategy involves increasing its stake in US asset manager TCW and Resolution Life. It is also open to fresh acquisitions, particularly in the stable North American life insurance market.
“We are considering as first priority raising the holdings in TCW and Resolution,” a Nippon Life executive was quoted by the publication as saying.
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By GlobalDataThe company is prepared to invest more than Y1trn in a single megadeal, with an option to acquire asset managers in the US, Europe and other markets.
However, it acknowledges challenges, including delays in US business expansion and slower growth in existing investments.
“We recognise as challenges the delay in US business expansion and the fact that existing investment targets have not grown as initially anticipated,” Shimizu added.
Currently, overseas operations contribute only around 4% to Nippon Life’s group profit, trailing behind competitors such as Dai-ichi Life Holdings, Meiji Yasuda Life Insurance and Sumitomo Life Insurance, who have successfully expanded internationally.
In response to the shrinking Japanese insurance market and pandemic-induced changes in consumer habits, Nippon Life is also diversifying into non-insurance sectors.
The company has established a new Life Support division and acquired Nichii Holdings, the parent company of Japanese nursing care provider Nichiigakkan.
