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Japan’s Dai-ichi Life Insurance to acquire Protective Life for $5bn

Japan-based Dai-ichi Life Insurance Company (DLI) is reportedly in advanced negotiations to acquire US-based insurer Protective Life, in a transaction that might be valued at more than $5bn.

Dai-Chi

If the proposed transaction materializes, it would be the biggest acquisition by a Japanese insurer yet, who are looking to boost their business in profitable overseas market.

Commenting on the media reports about the proposed takeover of Alabama-based Protective Life, Dai-ichi said: "It is true that we are looking into purchasing a U.S. life insurance company, it is not true that we have made a decision at this time."

"The company will promptly and formally announce matters, if any, that require disclosure," the statement added.

Japan’s Nikkei business daily, which first reported the Dai-ichi move, said that the company was prepared to pay about Y500bn, and the insurer would enter into final talks with Protective as early as next week.

The paper further reported that Dai-ichi Life is also considering acquiring all shares in Protective if the US insurer’s board approves.

Earlier in 2011, Dai-ichi purchased Australia’s Tower Australia Group in a $1.2bn worth transaction and bought a 40% in Panin Life of Indonesia in 2013 by paying $337m.

In February 2014, DLI signed an agreement to purchase 10% stake in Dai-ichi Frontier Life Insurance Co from Sompo Japan Insurance.
———————————————————————————————————————————————————————————————-Image: DN Tower 21, headquarters of The Dai-ichi Mutual Life Insurance Company in Chiyoda, Tokyo, Japan. Photo: courtesy of Rs1421.