Japan Post eyes stake in US firm Aflac

December 17 2018 by InsuranceAsia News Staff

Japan Post Holdings is planning to buy a stake in US insurance firm Aflac according to a source knowledgeable on the matter.

The initial plan is for Japan Post to first acquire about of 7% to 8% in Aflac for about ¥300 billion (US$2.6 billion).

After about four years, Japan Post will then be able to increase its holding to the maximum 20% allowed. Currently, Vanguard Group owns the biggest shareholding in Aflac at 8.77%. In a statement, Aflac confirmed that it was in talks with Japan Post on the possibility of the latter buying a minority stake in the company, but said that the discussions did not include Aflac or its subsidiaries becoming a member of the Japan-based conglomerate.

The transaction, which is expected to be announced this month, follows on from the agreement made between Japan Post and Aflac in 2013, which authorised Aflac to sell its cancer insurance at Japan Post’s offices throughout Japan.