TOKYO — Japan’s Dai-ichi Life Insurance today announced it would acquire the life insurance division of Australian finance groupÂ Suncorp for 640 million Australian dollars ($480 million) through a local subsidiary.
Having agreed on theÂ outline, the companiesÂ aim to finalize the deal by the end of August.
The total will amount to AU$725 million, including dividend payments made by Suncorp Life & Superannuation, the acquisition target, to its current parent company.
Suncorp is a major player in the Australian financial services industry, with businesses includingÂ insurance and banking. In 2011, Dai-ichi Life Insurance bought local provider TAL, making itÂ a wholly-owned subsidiary, and pushedÂ further into the Australian market by focusing on products such asÂ medical insurance.
The Japanese company aims to expand itsÂ market share through the acquisition of Suncorp.
The Australian government has tightenedÂ capital requirements, and Suncorp hasÂ soughtÂ to divest of capital-inefficient assets.
With the Australian life insurance marketÂ recording annual growth of 10%, a number of Japanese companies have expanded their presence in the country in recent years.
Following the takeover of TAL, now TAL Dai-ichi Life Australia, Nippon Life in 2016 paid 180 billion yen ($1.63 billion)Â to fully acquireÂ MLC, the life insurance armÂ ofÂ National Australia Bank. Last year, MS&AD Insurance Group bought a 44-billion-yen-stake in local annuities provider Challenger.