Why Japanese Life Insurers Are Buying Up U.S. Life Insurance Companies

Japanese life insurers are making big moves in the U.S. market. But what’s driving these billion-dollar deals, and what does it mean for policyholders like you?

In this review, we cover the companies, life insurance policies, and life insurance underwriting to give you a better picture of the industry.

Over the last 15 years, Japanese life insurance companies have quietly but steadily expanded their presence in the U.S. by acquiring well-established insurers. These deals aren’t random; they’re part of a bigger strategy to find new markets, escape shrinking profits at home, and tap into more substantial returns abroad.

Let’s look at who’s buying whom—and why it matters.

Japanese insurers have been expanding their presence in the U.S. for years. Some of the most notable acquisitions and investments in life insurance companies include:

It was founded in 1902 as Japan’s first mutual life insurance company and has since converted to a stock-holding company.

Dai-chi Life Holdings acquired Protective Life Insurance Company in 2015 for $5.7 billion.

In addition to the U.S., Dai-Chi Life operates in Australia, Cambodia, India, Indonesia, New Zealand, the U.K., and Vietnam.

Founded in 1907, Sumitomo is a mutual life insurance company.

Sumitomo Life Insurance Company purchased Symetra Financial for $3.8 billion in 2016.

As of March 2024, Sumitomo has $316.8 billion of individual life insurance on its books.

Ratings include:

• S&P Rating of A+
• Moody’s Rating of A1
• Fitch Rating of A+
• Japan Credit Rating of AA

Sumitomo has locations in the U.S., China, Indonesia, Singapore, and Vietnam.

Nippon Life is the largest life insurance company in Japan and also one of the world’s top three largest insurance companies.

This company, part of the Nippon Life Group, offers individual insurance, corporate insurance, and asset management.

In 2019, Nippon Life Insurance Company bought National Life Group.

Nippon invested $3.8 billion in Corebridge Financial in 2024.

In addition to the U.S., Nippon owns life insurance companies in Australia, China, India, Indonesia, Myanmar, and Thailand.

Established in 1881, Meiji Yasuda has locations in the United States, China, the United Kingdom, Poland, and Thailand.

Meiji Yasuda Life Insurance Company recently agreed to purchase Legal & General America (Banner Life) for $2.3 billion from L&G in the U.K.

L&G sought to simplify its business and refocus on its home market in the United Kingdom.

Meiji Yasuda previously acquired The Standard for $5 billion in 2016.

These deals have enabled Japanese insurers to establish a significant foothold in the U.S., diversifying their portfolios and expanding their market reach.

The motivation behind these acquisitions can be traced back to several key factors:

Japan’s population is one of the oldest in the world, characterized by a declining birth rate and increasing life expectancy. According to The Japan Times, life insurance companies are expanding overseas due to the shrinking domestic market.

According to S&P Global, the Japanese economy has struggled with low interest rates for yen-based products, while U.S. markets have offered higher yields.

And while interest rates are rising gradually in Japan, the American market still offers a better investment return for Japanese life insurance companies.

Expanding into the U.S. enables Japanese insurers to diversify their risk across multiple markets, thereby reducing their dependence on the Japanese economy.

The U.S. life insurance industry is one of the largest and most stable in the world, providing a safer, long-term investment opportunity.

Japan’s strict financial regulations limit insurers’ ability to grow domestically, while the U.S. offers more flexibility and expansion opportunities.

By acquiring established U.S. life insurance companies, Japanese insurers can immediately tap into an existing customer base and a well-regulated, profitable industry.

While the influx of Japanese ownership in the U.S. life insurance industry has raised some concerns, the impact on policyholders has been largely positive.

Here’s what it means for U.S. consumers:

Japanese insurers are well-capitalized and conservative in their investment strategies, which can enhance the financial strength of companies they acquire in the U.S.

This means greater stability for policyholders and reduced risk of insolvency.

In most cases, policyholders see little to no change in their policies after an acquisition.

Japanese insurers generally retain the brand, management, and policy structures of the companies they acquire, ensuring continuity in service.

As insurance agents who work with several of these companies, our experience has been positive. We have not noticed any negative changes in policy sales or servicing.

Japanese insurers have introduced unique product offerings in their domestic market, including hybrid insurance products and wellness-focused policies.

Although it hasn’t happened yet, some of these innovations could eventually enter the U.S. market, providing policyholders with more options.

The life insurance market has become more competitive, with major Japanese insurers investing in U.S. companies.

This can lead to better pricing, improved customer service, and more options for consumers.

And if you’re wondering, “Do U.S. life insurance companies do business in Japan?” the answer is yes.

Companies like Aflac, Prudential, and Manulife (the parent of John Hancock) do business in Japan.

Japanese life insurance companies are aggressively acquiring U.S. insurers as part of a strategic move to counter challenges in their domestic market.

It adds diversification to their portfolios and capitalizes on higher yields in the U.S.

For U.S. policyholders, this trend generally brings financial stability, minimal service disruptions, and potential for innovation.

As Japanese insurers continue to seek growth opportunities, we can expect further cross-border deals shaping the future of the life insurance industry.