Nippon Life Insurance is looking outside its domestic market in Japan, with new acquisitions and increase in stakes, for revenue expansion.
The insurer is reportedly planning to acquire National Australia Bank’s insurance business by March 2016, for a consideration of ¥200bn to ¥300bn ($2.5bn).
It has also signed an agreement with India’s Reliance capital to increase its stake in Reliance Capital Asset Management (RCAM) from the existing 35% to 49%, the maximum stake allowed for a foreign insurance investor to own in the country.
Nippon will spend $184m to acquire the additional 14% stake in RCAM, which is valued at $1.3bn. The entity will be renamed Reliance Nippon Life Asset Management.
Nippon Life Insurance president Yoshinobu Tsutsui said: "Reliance Group and Nippon Life have built a strong partnership through exchanges and collaborations in various fields. We believe this investment will further strengthen the ties of both companies, achieve perpetual growth and contribute to further economic development of India and Japan."
The 125-year-old private life insurance company is planning to invest ¥1.5tn in three years for mergers and acquisitions, reported Kyodo news agency.
Last month, Nippon agreed to buy Mitsui Life Insurance for ¥300bn to ¥350bn.
In addition to the Australian insurance business, the company is also likely to buy a life insurer in the US, as the aging and declining population in Japan is making the market unattractive for insurers.
The Osaka-headquartered company has over 10 million policies in Japan, and operates in the US, Europe and Asia.
Image: Nippon plans to invest ¥1.5tn in M&A within three years. Photo: courtesy of Fantasista / Freedigitalphotos.net.