Japanese insurance major Nippon Life Insurance (Nippon Life) has strengthened its presence in the Indian market with the formation of a new subsidiary, Nippon Life India.
The move is aimed at enhancing the company’s operations and leveraging India’s growth potential.
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Nippon Life India is a direct subsidiary of Nippon Life Asia Pacific, which is based in Singapore and holds a 100% stake in the new entity.
The parent company, Nippon Life, owns Nippon Life Asia Pacific entirely.
Nippon Life Asia Pacific’s functions encompass market research and business management across the Asia region.
The establishment of Nippon Life India in Mumbai is a strategic decision to utilise geographical proximity for more effective management and support of the company’s Indian ventures.
Nippon Life already has a significant presence in India through investments in Reliance Nippon Life Insurance Company and Nippon Life India Asset Management.
The Japanese company views India as an important market due to its status as the world’s most populous country and promising economic prospects.
In a statement, Nippon Life said: “We will continue to contribute to the development of the life insurance and asset management markets in India from [a] long-term perspective.
“Through the growth of our life insurance and asset management entities, we aim to enhance Nippon Life’s profitability and ultimately enhance benefits for our policyholders.”
Last month, reports emerged that Nippon Life aims to double its core operating profit to an estimated Y1.4trn ($9.22bn) by the mid-2030s.
The company’s three-year business plan, which commenced in April, targets a profit of Y860bn for the fiscal year 2026.
This represents a 20% increase from the average profit between fiscal years 2021 and 2023.
The company’s long-term vision extends to the fiscal year 2035, with a significant emphasis on growing its overseas operations.
Nippon Life has allocated more than Y2trn for strategic investments, underlining its global ambitions and the importance of international markets in its growth strategy.
