Nippon Life Insurance, Japan's biggest life insurance company, has entered into final negotiations over acquiring US life insurer MassMutual Life's subsidiary in Japan, reported The Nikkei.
Nippon Life will spend JPY100 billion (US$886 million) to JPY200 billion to purchase a majority stake in the company. The agreement is expected to be signed in the current fiscal year ending in March 2018.
This will be the first consolidation in the Japanese life insurance market since Nippon Life acquired Mitsui Life Insurance in 2015.
MassMutual's Japan subsidiary specialises in selling insurance products over the counter. Nippon Life has lagged behind its domestic competitor Dai-ichi Life in this area, and will look to strengthen its business through the acquisition.
In an interview earlier this year with Reuters, Nippon Life President Yoshinobu Tsutsui said his company was looking for acquisition opportunities for overseas asset management companies and life insurers.
In October last year Nippon Life completed the acquisition of an 80% stake in National Australia Bank’s life insurance unit for A$2.2 billion ($1.72 billion).