Nippon Life Insurance Co. is considering buying its smaller competitor, Mitsui Life Insurance Co., in an attempt to regain the crown as Japan's top premium revenue earner through what would be the first major shake-up of the country's insurance sector in roughly 11 years, sources said Wednesday.
Mitsui Life has broadly agreed to the terms of the envisaged acquisition, in which Nippon Life, also known as Nissay, is set to offer up to ¥400 billion ($3.34 billion) to acquire Mitsui Life shares from major stockholders, including Sumitomo Mitsui Banking Corp., according to the sources.
Buying Mitsui Life would contrast with a wave of multibillion-dollar takeovers abroad by Japanese insurers as the country's aging population limits growth prospects at home.