TOKYO -- Japan's Dai-ichi Life Holdings plans to acquire the individual life insurance and annuity business of Liberty Life Assurance Co. of Boston for about $1.2 billion in hopes of boosting earnings at home and abroad.
An official announcement could come as early as Saturday. Lincoln Financial Group, which is purchasing Liberty Life Assurance, will reinsure the latter's life and annuity business to Protective Life, a Dai-ichi Life subsidiary in the U.S.
This could mark the Japanese insurer's largest acquisition since bringing Protective under its umbrella in 2015. Dai-ichi Life aims to complete the purchase in the first half of fiscal 2018.
Liberty Life has roughly 500,000 policies in the U.S. under its individual life and annuity business. Dai-ichi Life could see a 5 billion yen to 10 billion yen ($45.1 million to $90.3 million) increase in net profit from the acquisition.
Dai-ichi Life has been bolstering American operations through Protective, which in recent years has acquired certain Genworth Financial operations and United States Warranty Corp.