Nippon Life has acquired a 1% stake in
pan-Asian life insurance provider AIA Group worth approximately
US$430 million as at the close of 20 March 2012.
AIA Group said Nippon Life’s investment in it
would enable the Japanese insurer to participate in the
“significant growth opportunities” available to AIA across its
Asia-Pacific ex-Japan life insurance markets, primarily through its
proprietary agency distribution channel.
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The investment came as AIA Group also said
that it has signed a memorandum of understanding (MOU) with Nippon
Life.
The objective of the MOU is to strengthen the
existing relationship between Nippon Life and AIA by establishing a
structured and mutually beneficial basis for the exchange of
industry best practices on product and distribution matters. This
will include an exchange programme of personnel for training and
development.
Tucker’s view
Commenting on the MOU, Mark Tucker, AIA’s
group chief executive and president welcomed Nippon Life as a
shareholder.
Tucker said: “We are delighted to have a
structured, ongoing working relationship with a company with such
strong corporate values and commitment to the service it provides
to its customers as Nippon Life.”
Nippon Life’s investment in AIA Group comes
after it agreed to acquire 26% stake in India’s Reliance Capital
Asset Management’s common shares for approximately approximately
22bn yen in January 2012.
AIA Group had total assets of US$114.4bn as of
30 November 2011.
