Japanese Insurance firms in Collaboration with the U.S. Firms Focusing on Emerging Markets
Published By : 17 Jul 2015 | Published By : QYRESEARCH
Several insurance firms from Japan are eyeing the growing markets in the U.S. The declining population in Japan is pursuing these firms to focus on potential overseas market. Few of these firms are Sompo Japan Nipponkoa Insurance Incorporated and MS&AD Insurance Group Holdings Incorporated. These firms are presently looking for potential mergers with peers from the United States.
The property and casualty insurance firms are especially focusing on foreign acquisitions as they are currently under high pressure to expand geographically. This is expected to allow a better profit which will be generated outside the home country and help to offset the payouts for damages caused by typhoon and earthquakes in the country.
Furthermore, the United States is a lucrative market for Japanese insurance companies because it is a growing market and also because the U.S. insurance firms are currently open to exploring a sale prior to years of low interest rates that have weighed on their margins and negatively impacted their profits.
Several deals are like to occur between Japanese and the U.S. insurers, according to investment bankers and market executives. Furthermore, Sompo and MS&AD are adding more mergers and acquisition to their portfolio as their business development teams are in the process of seeking and executing these acquisitions.
According to a Sompo representative, the mergers and acquisitions team is headed by him and they are in a position to enhance their quality and speed of studying the agreements. He further said that in the corporate insurance lines they will study the potential in specially insurance in the European and the United States market. He also stated that for the overseas property and the insurance for casualties there is a team in their foreign business division and they are expanding this team, and they also have a dedicated team for international life insurance M&A.