Japan’s largest listed life insurer, Dai-ichi Life Holdings Inc., is exploring new merger and acquisition (M&A) opportunities in Southeast Asia. The company aims to grow its presence in overseas markets, especially in regions where the middle class is expanding rapidly.
Focus on the Philippines and Malaysia
According to Brett Clark, a Senior Managing Executive Officer who oversees the Asia-Pacific region outside Japan, Dai-ichi Life sees the Philippines and Malaysia as promising markets. These countries are witnessing economic growth and rising income levels. More households are entering the middle class, creating strong demand for financial services like life insurance.
Singapore on the Radar Despite Competition
Dai-ichi Life is also interested in gaining more customers in Singapore, a country known for its wealthy clients and a competitive insurance market. Clark acknowledged the tough environment but said the company remains ambitious. “The whole of Asia Pacific is a competitive market and so we’re not complacent,” Clark said. “We would prefer to avoid small and subscale positions in many markets and would rather have larger and scaled positions in fewer markets.”
Why Overseas Expansion Matters
Japanese insurers like Dai-ichi Life are now looking abroad because Japan’s aging population and low birth rate are slowing down business at home. Meanwhile, Western markets like the US and Europe are saturated, pushing companies to turn their attention to Asia.
Other Japanese firms, like Sumitomo Life Insurance Co., have already taken bold steps. Last year, Sumitomo made Singapore Life Holdings Pte a wholly owned subsidiary, signaling the importance of the region.
Long-Term Profit Goals
Dai-ichi Life plans to earn about half of its group’s adjusted profit from international life insurance operations by fiscal year 2030-31. Half of that will come from countries in the Asia-Pacific region outside Japan. The company hopes to increase profit in this region from ¥576 billion to ¥1.5 trillion during this period.
Adjusted profit is used to determine shareholder returns. It excludes temporary accounting gains or losses and gives a clearer view of operational strength.
Future Plans: More Deals in Sight
Clark said the company is open to acquiring insurance companies or asset management firms in countries like Singapore, Malaysia, and the Philippines. “If we could add an operating unit in Singapore or Malaysia or the Philippines, that would be ideal for us sometime over the next few years,” Clark said.
Existing Global Presence
Currently, Dai-ichi Life already operates in Australia, India, and other Southeast Asian markets like Vietnam. Interestingly, Clark once served as an executive at Tower Australia Group Ltd., the firm Dai-ichi purchased in 2011.