TOKYO -- Dai-ichi Life Holdings will expand into Cambodia, anticipating rising demand for insurance in Southeast Asia as the region's economy grows.
The Tokyo-based insurer will as early as this month set up a wholly owned subsidiary in Cambodia, a first for a Japanese life insurance company, aiming to begin operating in the fiscal year starting in April. It will gradually invest around 4 billion yen ($37.7 million) in the Phnom Penh-based unit to fund its expansion.
The Cambodian unit will start off by offering insurance through local banks. Dai-ichi Life plans to employ about 100 local staffers there, including over-the-counter sales personnel and individual agents.
Dai-ichi Life entered Southeast Asia in fiscal 2006 with the acquisition of Vietnam's Bao Minh CMG Life Insurance and has worked since then to build up its presence in the region.
Cambodia has attracted a number of foreign insurers in recent years, thanks to its relatively young population and expectations of long-term economic growth. Bangkok Life Assurance, which counts Japan's Nippon Life Insurance among its major shareholders, entered the market in 2017.