Asahi Mutual Life Insurance Co. said Friday it will raise 150 billion yen and cut its shareholding losses by 400 billion yen by March 31 in a bid to regain customer trust and stop policy cancellations.
Asahi will use 100 billion yen of subordinated loans from Dai-Ichi Kangyo Bank, 25 billion yen from Asahi Bank and 25 billion yen from Daiwa Bank, to raise its capital base from 100 billion yen to 250 billion yen.
Funds that make up a life insurer's capital base are least likely to be returned to banks in the event of failure. Banks usually cut off aid rather than have subordinated loans used to boost a borrower's capital base.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.