Nippon Life Insurance is looking at acquisitions to fuel its growth, according to Hiroshi Shimizu, who was promoted to president of the insurer on Thursday.
Japan’s largest privately-owned life insurer faces a shrinking population and low interest rates in its home market, leading it to look overseas for acquisition targets for its growth.
“M&A is an important option for our growth,” said Shimizu, who is currently director and senior managing executive officer of Nippon Life. He joined the company in 1983 and has held his current post since 2016.
Effective April 01, 2018, Shimizu, 56, will succeed Yoshinobu Tsutsui, 63, who will become Nippon Life’s chairman.
Nippon Life, which has ¥74 trillion (US$678.34 billion) in assets, is among many Japanese insurers that are increasing their overseas acquisitions and investments as they seek to diversify their geographic and business portfolios, reported Reuters.
During Tsutsui’s term, Nippon Life invested over ¥700 billion (US$6.42 billion) in various insurance companies and asset management firms in Japan and overseas. In 2016, the company bought an 80% stake in National Australia Bank’s life insurance unit for US$1.78 billion and acquired its smaller domestic competitor Mitsui Life Insurance for US$2.5 billion.
In December, Nippon Life announced that it would acquire a 24.75% stake in the US-based investment firm TCW Group from private equity firm Carlyle Group LP.
“We would like to expand (the) asset management business,” Shimizu added.
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