Meiji Yasuda Life Insurance will acquire Banner Life Insurance for approximately ¥352.2 billion and invest an additional ¥130 billion in Legal & General Group. The acquisition is set to increase the company’s insurance premium income and its overseas business ratio. This strategic movement aligns with a broader industry trend as Japanese firms seek growth beyond their domestic markets.
On Friday, Meiji Yasuda Life Insurance announced its plan to acquire Banner Life Insurance for approximately ¥352.2 billion. Furthermore, the company intends to invest about ¥130 billion to secure a 5% equity stake in the parent company of Banner Life, Britain’s Legal & General Group. The transaction is expected to finalize by March 2026, reflecting Meiji Yasuda’s commitment to expanding its market presence in the United States.
This acquisition is anticipated to significantly enhance Meiji Yasuda’s insurance premium income, projected to increase by around ¥500 billion. Additionally, it aims to raise the Japanese insurer’s overseas insurance business ratio from 15% to 26%, a strategic move as Japanese life insurance companies look to grow amidst a contracting domestic market.
With this initiative, Meiji Yasuda’s total investment in the United States will approximate ¥1.4 trillion. This trend is mirrored by other Japanese firms, such as Nippon Life Insurance, which invested in CoreBridge Financial and plans to acquire Resolution Life Group Holdings. Meiji Yasuda has also expressed intentions to acquire American Heritage Life Insurance, showcasing a broader trend of international expansion in the insurance sector.
In conclusion, Meiji Yasuda’s acquisition of Banner Life Insurance and its investment in Legal & General Group exemplify the strategic efforts of Japanese life insurance companies to expand internationally. This move is expected to generate significant growth in premium income and increase the proportion of overseas business, reflecting the challenges faced within the domestic market.
Original Source: www.japantimes.co.jp
Leave a Reply