NIPPON LIFE MIGHT BUY EQUITY IN JAPAN POST INSURANCE

Japan’s largest private sector life assurer Nippon Life is considering taking a stake in Japan Post, the state-owned assurer that is in the process of being privatised. Following Friday’s announcement that the two companies were going to link up in areas of sales and product development, Nippon Life’s president Kunie Okamoto said that he was willing to extend the alliance, including the possibility of buying shares in Japan Post when it is opened up to private investors. Japan Post could become a public company as early as 2010. Japan Post has about 55m life policies in force, compared with Nippon Life’s 10m. It also has the Japan Post distribution network. However, Nippon Life is seen as more advanced in product development, particularly at the higher end, and has its own network of sales agents.