Nippon Life Insurance Co. plans to acquire an operator of independent insurance agencies to expand sales channels and better respond to customer demands, sources close to the matter said Tuesday.

Nippon Life, one of the biggest Japanese life insurers, will buy a more than 90 percent stake in Life Salon Co. later this month for about ¥1 billion ($8.33 million) through a third-party allocation of shares, the sources said.

Independent insurance agencies sell policies from various companies. Life Salon, a medium-sized firm in the sector, currently operates 50 sales offices nationwide.

The Tokyo-based company will continue to sell other insurers' products even after being acquired by Nippon Life, as the independent agency market has enjoyed robust demand, particularly from younger customers, the sources said.

Under a business plan released in March, Nippon Life said it aimed to purchase independent agencies to boost domestic operations, despite a shrinking market with an aging population. Nippon Life has said it plans to triple overseas profits to ¥30 billion by March 2018 through mergers and acquisitions.

The company will continue to use its sales staff to sell products, a method that still accounts for some 90 percent of sales, the sources said.