Japan-based Meiji Yasuda Life Insurance and Germany-based Talanx have signed definitive agreements on a strategic alliance consisting of capital and business alliances.
Meiji Yasuda has said that the primary objective of the strategic alliance is to exploit joint business opportunities in the increasingly globalized insurance markets in order for both companies to pursue sustainable growth.
Meiji Yasuda Life has been aiming to strengthen its overseas business in order to enhance its growth and diversify its business portfolio, with a strong business platform in Japanese life insurance market.
Talanx is planning to further grow its primary insurance business in selected markets with emphasis, among others, on central and eastern europe. Talanx is also aiming to expand its existing industrial business in Japan.
The capital alliance consists of a convertible perpetual subordinated bond in the principal amount of €300m which will be issued by Talanx and acquired and held by Meiji Yasuda Life.
However, in the case of an IPO of Talanx, it will be converted into common stocks of Talanx. After the IPO, Meiji Yasuda Life will be an important shareholder of Talanx.
The business alliance of identifying and realizing joint business opportunities will be carried out through Talanx’s subsidiary HDI-Gerling International, the intermediate holding company for the primary insurance business outside Germany.
Meiji Yasuda Life and Talanx will pursue joint business opportunities globally, including an establishment of joint ventures between the two companies, through the steering committee consisting of senior management officers from both companies, which plays a mojor role in supervising and accelerating the strategic alliance.
Talanx CEO Herbert Haas said, the company welcomes the capital and business alliance with Meiji Yasuda Life which will contribute to proactively develop new opportunities in growing international markets together, leveraging two companies’ strengths.
Meiji Yasuda Life and Talanx will pursue joint business opportunities globally, including an establishment of joint ventures between the two companies, through the Steering Committee consisting of senior management officers from both companies.
Meiji Yasuda Life will nominate two out of six supervisory board members of HDI-Gerling International and will dispatch several employees to Talanx.