Nippon Life Insurance will reorganize its overseas operations to better monitor risks from its recent spate of acquisitions abroad, according to people familiar with the matter.
Japan’s biggest life insurer will establish a new headquarters division in late March to manage its foreign businesses, and its overseas insurance and asset management departments will be absorbed into that organization, said the people, who asked not to be identified discussing internal matters. Its overseas planning department will also be supervised by that division.
A Nippon Life spokesperson said details of the reorganization will be released in early March.
Like other Japanese life insurers, Nippon Life is expanding abroad as a shrinking population in its home market limits opportunities. The company has spent nearly ¥2 trillion ($13 billion) in overseas deals since late last year, taking over U.S. insurer Resolution Life Group Holdings and investing in Corebridge Financial and TCW Group, both also based in the U.S.
Nippon Life sees the need to strengthen its internal management system to ensure it meets the firm’s goals on large-scale investments, and to avoid a repeat of the sorts of troubles faced after it acquired Australian life insurer MLC in 2016. MLC fell into financial difficulties, forcing Nippon Life to carry out three rounds of capital increases.
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