Japan’s Aeon Financial Service Co. has revealed plans to enter the life insurance market by taking control of a Japanese unit of global giant Allianz.
Aeon Financial, which is an affiliate of retailer Aeon Group, said that it will buy 32,400 freshly issued shares in Allianz Life Insurance Japan Ltd, according to Jiji Press. The transaction, which is estimated to be worth ¥3.6 billion (US$32.78 million), will allow Aeon to hold 60% of the voting rights in the insurer.
The deal, which will take place under a third-party allotment scheme, is expected to complete on March 31.
Aeon Financial, which engages in banking and other financial services such as credit cards and lending, said that it expects to broaden its financial reach through the acquisition. Aeon currently has an insurance agency under its wing, and the deal will bring a primary life insurer into the fold.
Allianz Life Insurance Japan stopped selling new insurance policies in February 2012, due to lacklustre performance. It currently has around 20,000 policies in force.
