TOKYO -- Nippon Life Insurance seeks to double net profit from its group businesses, which include overseas insurance and asset management, to about 70 billion yen ($617 million) by fiscal 2020, according to its new four-year management plan.
To get there, it envisions spending roughly 500 billion yen on mergers and acquisitions in the four years beginning fiscal 2017.
The insurer's fiscal 2015-2017 plan aimed to reach 30 billion yen in profit from group businesses. Nippon Life decided to cut that plan short and start work on its next once it became clear the goal would be achieved in the year ending this month, thanks to M&A totaling roughly 500 billion yen through the end of 2016.
The Osaka-based mutual company aims for 8% growth in annualized premiums for policies in force in Japan. Currently the figure stands at around 4 trillion yen, including premiums from Mitsui Life Insurance, which the company acquired in December 2015.
The fiscal 2017-2020 plan calls for developing new channels for reaching customers besides its core sales force, which still employs door-to-door sales.
The new plan takes into account the harsher yield environment created by the Bank of Japan's negative interest rate policy.