Nippon Life Insurance Company (Nippon Life) is actively exploring opportunities to acquire stakes in insurers and asset managers in the US and Asia, reported BNN Bloomberg.
In a media briefing, Nippon Life managing executive officer Minoru Kimura said: “We need to pursue further growth overseas. There are still many opportunities.”
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Kimura’s comments follow the Japanese insurer’s agreement to purchase a 20% stake in Corebridge Financial from American Insurance Group for $3.8bn to bolster its foothold in the US market.
Nippon Life had been considering a bid for Corebridge since last year, but serious discussions for a minority stake started a few months ago, the executive said.
Responding to why Nippon Life did not target a majority stake in Corebridge, Kimura explained: “We are a conservative company. It is difficult for us to do a deal involving huge amounts of money in a single shot.”
The insurer could consider buying majority stake in companies in the future, he added.
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By GlobalDataWhile Nippon Life is also eyeing potential targets in Europe, Kimura acknowledged that opportunities there are less abundant compared with the US.
The company’s goal is to diversify beyond its traditional domestic life insurance business, although its history of overseas acquisitions has been mixed.
In 2016, Nippon Life faced challenges after acquiring National Australia Bank‘s life insurance unit for A$2.2bn ($1.5bn), necessitating additional capital injections to maintain the unit’s financial health.
Kimura noted that securing talent is crucial for the company’s international expansion, stating: “We will boost human resources necessary for global businesses, like by hiring outside talent, including non-Japanese people.”
Further strengthening its international presence, Nippon Life recently established a subsidiary in Mumbai, Nippon Life India, to manage and support its Indian ventures more effectively.
With investments in Reliance Nippon Life Insurance Company and Nippon Life India Asset Management, the company views India as a key market given its large population and economic potential.
