In an aggressive move to expand its financial services, Sumitomo Life Insurance Co. has purchased about 10 percent of outstanding shares in ailing Taiheiyo Securities Co. and its subsidiary Taiheiyo Investment Trust Management Co., the two companies announced Tuesday.
Through capital participation in the two firms, Sumitomo hopes to use the knowhow of Taiheiyo Investment and the sales channels of Taiheiyo Securities as it enters the growing investment trust business.
The move will also rescue Taiheiyo Securities, a former Yamaichi Securities group company, which has been plagued by losses over the past seven years as well as by the collapse of Yamaichi earlier this year.