Japan Post to Acquire Stake in Aflac

Economy Politics

Tokyo, Dec. 13 (Jiji Press)--Japan Post Holdings Co. <6178> plans to spend some 300 billion yen as early as next year to acquire a 7-8 pct stake in U.S. insurance giant Aflac Inc., informed sources said Thursday.

Japan Post aims to diversify revenue sources by strengthening overseas businesses. The company is expected to announce the investment plan later this month.

The move comes as Japan Post is struggling with low interest rates that push investment returns lower at two key units, Japan Post Insurance Co. <7181> and Japan Post Bank <7182>.

In addition, logistics unit Japan Post Co. is hurt by higher costs stemming from labor shortages.

Japan Post is in a partnership with Georgia-based Aflac, selling cancer insurance products from its Japan unit at some 20,000 post offices nationwide.

[Copyright The Jiji Press, Ltd.]

Jiji Press