Japan Post Insurance Co. said it will postpone the planned release in April of its new educational endowment insurance because the requirements for approval have not been met.
Among other units of Japan Post Holdings, Japan Post Bank also has no prospect of gaining approval for its new services, which include housing loans.
The holding company’s envisaged stock listing in autumn 2015 may be affected if the two financial arms face substantial delays in starting the new operations, which are seen as key to boosting the group’s earnings.
The financial arm of Japan Post Holdings Co. applied to the Financial Services Agency for approval last September. But the company now says the delay is unavoidable, as the FSA is unlikely to approve the insurance while management of payments remains weak.
Following the revelation that the company may have failed to pay out on some 100,000 existing contracts, the FSA has put off approval.