Nippon Life lavishes JPY1.5 trillion M&A budget

Nippon Life Insurance Co. will spend up to JPY1.5 trillion on corporate mergers and acquisitions globally over the coming 10 years.

The major insurer also unveiled a three-year business programme aimed at tripling net profit from its group operations excluding the domestic insurance business to JPY30 billion.

Nippon Life aims to achieve the target by buying foreign insurers and asset management firms, officials said, adding that net profit from the segment will be raised further to JPY100 billion within 10 years.

On the domestic insurance business, Nippon Life said it would reclaim its position as the Japanese industry leader in terms of annualised premium revenue from new insurance policies. The firm is set to lose its No. 1 status to Dai-ichi Life Insurance Co. in the current year ending on March 31.

Nippon Life will also have added JPY1 trillion in capital over the coming three years from the JPY4.2 trillion estimated for the end of March this year.