Nippon Life Insurance Co. and Deutsche Bank AG, the largest bank in Germany, have sealed a comprehensive tieup agreement to strengthen their ties in asset management and in the sale of investment trusts in Europe and Japan, the two companies announced Wednesday.
The latest move by Japan’s largest life insurer, with its previous tieup last month with Putnam Investments of the United States, gives the life insurer an enhanced opportunity to invest its huge premium pool in financial products available in Japan, the U.S. and Europe.
Under their alliance, the two firms will set up a joint venture, tentatively named Nissay Deutsche Asset Management Europe, as early as April in London. The unit will specialize in asset management operations in Europe, officials of Nippon Life said.
Although the amount of startup capital for the joint venture has yet to be specified, Nippon Life is expected to provide two-thirds of the total, while Deutsche Bank will provide the rest, the officials said.
With the asset management venture, Nippon Life will attempt to improve its investment performance in the European market, where the currency integration will go into force in January. The latest tieup also features joint development and sales of investment trust products in Europe and Japan, according to the officials.
Under their agreement, Nippon Life in December will start selling investment trusts on the Japanese market that are jointly developed by the two financial giants, the officials said.
Deutsche Bank meanwhile will retail investment trust products of Nissay Asset Management Corp. through the bank’s sales channels in Europe, the officials said.
Starting in December, the government will lift regulations on life insurers and banks to retail investment trust products on the domestic market through their own sales networks.
The alliance also includes a capital tieup plan. Nippon Life will increase the percentage of the capital it owns in Deutsche Bank’s Japanese subsidiary from the current 5 percent to 10 percent, the officials said.
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