AIG sells Fuji Life to Pacific Century’s FWD insurance arm

AIG has agreed to sell AIG Fuji Life, its Japanese life insurance arm, to FWD Group, a subsidiary of Pacific Century Group, for an undisclosed amount, according to a statement from the vendor.

This is the second time Pacific Century has acquired a business from AIG having bought what is now PineBridge Investments Japan Co Ltd from the US company in 2009.

AIG Fuji Life appears to have no third-party institutional assets under its stewardship while PineBridge seems to be de-emphasising institutional business in favour of retail.

At 31 March this year PineBridge was managing 86.4 billion yen under 28 pensions mandates awarded by Japanese companies, compared with 161.9 billion yen when it acquired the business. Conversely, mutual fund assets under management have risen from 294.2 billion yen to 430.1bn yen.

Pacific Century Group is headed by Richard Li Tzar Kai, the second son of Hong Kong magnate Li Ka Shing.

According to a story on Bloomberg quoting AIG Chief Executive Officer Peter Hancock, the two firms have been ‘‘in constant discussions on a range of potential opportunities since the PineBridge deal’.

The deal is the latest in what Bloomberg describes as ‘a wave of unprecedented deal making in the industry’ which has been underway for many years. (For details see Japan’s shrinking insurance sector under ‘Reference points’ at right.)

© 2016 Japan Pensions Industry Database/Jo McBride. Reporting on, and analysis of, the secretive business of Japanese institutional investment takes big commitments of money and time. This blog is one of the products of such commitment. It may nonetheless be reproduced or used as a source without charge so long as (but only so long as) the use is credited to www.ijapicap.com and a link provided to the original text on that site.

This blog would not exist without the help and humour of Diane Stormont, 1959-2012

 

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