Kyoei Life Insurance Co. stands to gain up to 30 billion yen from Prudential Insurance Co. of America, which will buy new shares in the firm. The two companies said Thursday that they have signed a memorandum of understanding, which if realized, would see Prudential purchase a minority interest in the midsize life insurer.
Under the proposal, Prudential will invest 20 billion yen this year and possibly 10 billion yen next year through the purchase of the Kyoei shares.
In addition, Prudential will cooperate with Kyoei in insurance. Based on the agreement, Kyoei will sell Prudential 50 percent of the insurance contracts it secures over the next several years, receiving fees from Prudential in advance.