Allianz Life Insurance Japan is said to have more than 20,000 existing insurance policies, as of the end of March 2019
AEON Financial Service is set to enter into the life insurance business in Japan by acquiring a stake of 60% in Allianz Life Insurance Japan for JPY3.6bn ($32.87m) from German insurer Allianz.
The stake in the Japanese life insurance company will be acquired by AEON Financial Service by means of a third-party allotment. Subject to the approval of the relevant authorities, the Japanese financial services firm will take majority ownership in the life insurer.
Allianz will retain 40% stake in Allianz Life Insurance Japan.
The transaction will pave way for a joint venture between AEON Financial Service and Allianz to develop and sell life insurance solutions in Japan.
Allianz Life Insurance Japan was launched in 2008
Allianz Life Insurance Japan is said to have more than 20,000 existing insurance policies, as of the end of March 2019. Launched in 2008, the company had stopped distribution of all new life insurance products since January 2012.
The Japanese life insurance company has been focusing on continuing existing policies with support of Allianz.
AEON Financial Service revealed its plans to to grow the life insurance business as one of its core businesses through its new strategy, while protecting existing policyholders. The company said that it has no plans to change the terms and conditions of the policyholder’s insurance contracts.
The Japanese financial services firm, in a statement, said: “Through the proposed life insurance joint venture, the Company will work closely and in cooperation with “goods, activities, and services” provided by AEON Group companies to better understand and service the health related needs of customers.
“We expect to help customers with health promotion activities against non-disease or prevention by making health improvement proposals in collaboration with AEON Group companies.”
The partnership with AEON Financial Service is expected to enable Allianz to tap into the capabilities of a strong local partner and help in the future growth of the joint venture in the world’s third largest economy. The life insurance joint venture is expected to launch new products and services in the Japanese market in due course.
Allianz stated: “The strategic partnership will combine Allianz’s global financial expertise in insurance and risk management, alongside the local retail expertise and expansive distribution network of AFS and the AEON Group – ensuring local customers in Japan have increased access to market-leading protection, health and savings products and services.”