S&P Global Market Intelligence offers our top picks of insurance news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.
M&A activities
* Japan's Nomura Holdings Inc. will sell its unit, Asahi Fire & Marine Insurance Co. Ltd., to Rakuten Inc. Both companies reached an agreement for the e-commerce group's tender offer for Nomura's shares in the nonlife insurer.
* The Chinese government is reportedly looking to take a stake in Anbang Insurance Group Co. Ltd. via state-owned investment company Central Huijin Investment Ltd.
* QBE Insurance Group Ltd. is said to have reportedly hired Morgan Stanley as an adviser for the potential sale of its Latin American operations.
* Sri Lanka-based Janashakthi Insurance PLC is reportedly selling its general insurance business, Janashakthi General Insurance Ltd., to an undisclosed buyer.
* Nippon Life Insurance Co. will acquire all the shares it does not hold in 90%-owned unit Nissay Asset Management Corp. from Putnam Investment Management LLC, making it a wholly owned subsidiary.
IPOs and new ventures
* The Indian government plans to merge three state-owned insurers — Oriental Insurance Co. Ltd., National Insurance Co. Ltd. and United India Insurance Co. Ltd. — and subsequently list the merged entity.
* Ping An Insurance (Group) Co. of China Ltd. is planning to spin off and list its affiliate company, Ping An Healthcare and Technology Co. Ltd., on the main board of the Hong Kong Stock Exchange.
* Taiwan's Financial Supervisory Commission said it is not blocking Nan Shan Life Insurance Co. Ltd.'s plans for an IPO, addressing rumors that the commission opposed the planned listing.
* Chubb Ltd. has launched an agency management and underwriting unit in Singapore, which will manage the strategic growth of the agency distribution channel and its specific underwriting and service needs.
* Japan Post Bank Co. Ltd. and Japan Post Insurance Co. Ltd. agreed to establish a new asset management company named Japan Post Investment Corp. to drive revenue growth through private equity investment primarily in Japan-based companies.
* Swiss Re AG launched its Asian regional headquarters in Singapore, Swiss Re Asia Pte. Ltd., and appointed a new regional board of directors for the entity.
Rating agency actions
* S&P Global Ratings raised the outlook on Japan's Orix Life Insurance Corp. to stable from negative. The rating agency also affirmed the insurer's long-term issuer credit and insurer financial strength ratings at A-, while maintaining its assessment of the insurer's stand-alone credit profile at "a-."
* A.M. Best has revised the outlooks to stable from negative and affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of "a-" of ERGO Insurance Pte. Ltd.
* S&P Global Ratings lowered the outlook on Australia's QBE Insurance Group Ltd. and its core entities to stable from positive. S&P also affirmed the A- issuer credit ratings on the insurer.
* China's new regulations on Chinese insurance companies' use of funds are credit positive for insurers as they will lead to better corporate governance and risk management, Moody's said in a Feb. 1 credit outlook.
* Shinhan Card Co. Ltd.'s planned acquisition of Prudential Vietnam Finance Co. Ltd. is credit positive for the South Korean card company as it would immediately give the card company a foothold in Vietnam's consumer loan market, Moody's said.
* Nomura Holdings Inc.'s sale of its stake in Asahi Fire & Marine Insurance Co. Ltd. to Rakuten Inc. is credit positive for Nomura as the transaction will generate proceeds while reducing the company's risk-weighted assets, which will help the firm boost its capital metrics.
In other news
* Malaysia's AFFIN Holdings Bhd. said it successfully completed the distribution of all its shares in AFFIN Bank Bhd. AFFIN Holdings is now a dormant company and AFFIN Bank will be listed in its place on Bursa Malaysia on Feb. 2.
* Pt Hanwha Life Insurance Indonesia entered into an agreement with PT Bank Woori Saudara Indonesia 1906 Tbk to develop business in the bancassurance distribution channel.
* India's SBI Life Insurance Co. Ltd. reported a profit after tax and extraordinary items amounting to 2.30 billion Indian rupees, up from 1.90 billion rupees in the prior-year period. EPS for the period went up to 2.30 rupees from 1.90 rupees.
* China Life Insurance Co. Ltd. expects to post a 55% to 75% year-over-year increase in net profit for 2017, on the back of a rapid increase in investment income and the impact from a change in the discount rate assumption of reserves of traditional insurance contracts.
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