Taiyo Life Insurance Co. converted itself Tuesday into a stock company from a mutual firm, becoming the second Japanese mutual life insurer to become a stock company, excluding ones that have since failed.
Taiyo listed its stock on the First Section of the Tokyo Stock Exchange.
The conversion, known as demutualization, enables the firm to set up a holding company and procure funds more easily, the company said.
Following the move, Taiyo intends to integrate operations with Daido Life Insurance Co., the first Japanese mutual life insurer to go public, under a holding company by April 2004.
Taiyo was capitalized at 37.5 billion yen with 1.5 million shares issued.
As policyholders are members of a mutual life insurer, conversion requires the company to allocate shares to them in accordance with their contributions to its assets.