Japan Post Insurance, Daiwa Securities to Form Tie-Up

Economy

Tokyo, May 15 (Jiji Press)--Japan Post Insurance Co. and Daiwa Securities Group Inc. said Wednesday that they will form a capital and business tie-up in asset management.

The life insurer will invest 52.5 billion yen in Daiwa Asset Management Co. by July 1 to take a 20 pct stake and make the Daiwa Securities Group unit an equity-method affiliate.

Through the tie-up, the Japan Post and Daiwa Securities groups will work together to enhance asset management capabilities and profitability.

Japan Post Insurance will commission Daiwa Asset Management to manage about 1 trillion yen in assets over the next two years or so. It will send an official to the Daiwa Securities Group unit's New York office to engage in the management of U.S. Treasury securities and corporate bonds.

The tie-up is "expected to boost Japan Post Insurance's investment profits and increase Japan Post Co.'s income from commissions on sales of Japan Post Insurance products," thereby helping to maintain Japan Post's post office network, Hiroya Masuda, president and CEO of Japan Post Holdings Co., the parent of the insurer and the postal company, said at a press conference in Tokyo.

[Copyright The Jiji Press, Ltd.]

Jiji Press