Nippon Life to buy MassMutual Japan for up to US$1.77bnOctober 6 2017 by InsuranceAsia News Staff
Japan’s Nippon Life Insurance, seeks to strengthen its business by acquiring the Japan subsidiary of US life insurer MassMutual Life.
According to reports, Nippon Life is already in final stage negotiations to acquire a majority stake in MassMutual’s Japan subsidiary that could cost ¥100 billion to ¥200 billion (US$866 million to US$1.77 billion).
If the deal pushes through, it will be the first consolidation in the Japanese life insurance market since 2015, when Nippon Life acquired Mitsui Life Insurance.
In Japan, MassMutual specialises in selling over-the-counter (OTC) insurance products. But OTC insurance sales have been declining due to the Bank of Japan’s negative interest rate policy.
Nippon Life and MassMutual Japan are expected to close the deal within the current fiscal year ending in March 2018.
MassMutual started out as Yokohama Life Insurance in Japan in 1907 and became a unit of the US insurer in 2001.
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