What’s Behind Japanese Life Insurers Acquiring U.S. Companies?
August 20, 2015 by InsuranceNewsNet
Recent billion-dollar acquisitions of U.S. life carriers by large Japanese life insurers don’t necessarily mark the beginning of a trend, as very few Japanese insurers are large enough to execute such transactions, an analyst said.
With three of the four largest Japanese insurers having announced U.S. acquisitions in the past year, the Japanese giants are likely to pause to digest and integrate their new purchases instead of going out and buying more,Morgan Stanley analyst Nigel Dally said.
“What has been especially of interest to investors have been the substantial premiums the Japanese insurers have paid — in the past three transactions, the transaction price was a 36 percent premium on average to where the stocks were trading prior to the announcement,” Dally said in a note to investors this week. Click HERE to read the article.
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