Japan Post Insurance Co. and Dai-ichi Life Insurance Co. plan to tie up on a wide range of operations, including asset management and product development, informed sources said Tuesday.
The two companies will jointly invest in growth areas such as overseas infrastructure projects to survive what is seen as the tough business environment in Japan.
Life insurance firms are struggling due to the Bank of Japan’s negative interest rate policy introduced last month, which is making it difficult for them to earn sufficient returns through asset management.
Japan Post Insurance, whose investments now focus on domestic government bonds, hopes to diversify its fund management with the help of Dai-ichi Life.
Dai-ichi Life aims to benefit and lower costs through economies of scale by cooperating with Japan Post Insurance, which owns massive assets.
The two will jointly develop medical and nursing care insurance products. Dai-ichi Life expects to strengthen sales of its products by taking advantage of Japan Post Insurance’s sales networks nationwide.
Japan Post Insurance will provide sales know-how to state-run Vietnam Post, which has ties with Dai-ichi Life. Japan Post Insurance is also considering acquiring a stake in a wholly-owned Vietnam unit of Dai-ichi Life.