Morning Briefing: StanCorp acquired by Japanese insurer

StanCorp acquired by Japanese insurer
StanCorp Financial Group is to be acquired by Japan’s Meiji Yasuda Life Insurance for $5 billion. The Japanese firm announced Friday that it has agreed to buy the US group, which includes Standard Life Insurance of New York and Standard Insurance Company. Subject to shareholder and regulatory approval StanCorp will become a wholly-owned subsidiary of the Japanese firm and be used as its base to expand its global operations. The acquisition is reported to be a friendly transaction approved by the StanCorp board.
 
Foreign firms blocked from 100 per cent ownership of Indian brokers
International insurance brokers seeking to gain a strong foothold in the growing Indian market have been dealt a blow by the country’s regulator. The Insurance Regulatory and Development Agency (IRDA) has ruled out the possibility of 100 per cent foreign direct investment in Indian insurance brokers having appointed a committee to investigate the option. The current 49 per cent FDI limit will remain. Indian brokers are already expressing concern that as the 51 per cent shareholding held by domestic investors is often fragmented, many foreign insurers already hold much of the power in brokerage firms.
 
Hong Kong insurer begins global spread with Caribbean investment
Hong Kong-based insurer Peak Re has expressed plans to increase its global footprint and has taken a step towards that with a 50 per cent stake in Caribbean insurer Nagico. It’s the first investment outside Asia for Peak Re but the firm has recently hired specialists to help it grow internationally.
 
NZ personal injury sector under investigation
An investigation has been launched into the New Zealand personal injury insurance sector to look at claims that some policyholders are being switched to new policies unnecessarily. The probe will focus on incentives for salespeople and whether the rate of churn is too high and benefitting only the seller not the client. It has been suggested that clients are often moved to policies with weaker coverage than their previous one in order to boost commission for the broker or agent. The Financial Services Council has appointed a third-party to carry out the investigation.