Japan Post Insurance to acquire 20% of Daiwa Asset Management

Just a couple of days after Daiwa Securities acquired 15% of Aozora Bank, Japan Post Insurance, Daiwa Securities Group., and Daiwa Securities Group’s consolidated subsidiary, Daiwa Asset Management, have agreed to enter into a capital and business alliance. Under the Alliance, Japan Post Insurance will underwrite a third-party allotment capital increase by Daiwa Asset Management, and will acquire 20% of Daiwa Asset Management’s shares after the capital increase.

Background and objective of the Alliance

The Japanese economy, having emerged from the prolonged stagnation that followed the bursting of the bubble economy and the turmoil caused by the COVID-19 pandemic, is now taking steady steps toward a long-term growth trajectory in a wide range of fields, creating an environment that is expected to lead to a virtuous cycle that starts with investment.

A tectonic shift “from savings to investments” is occurring against a backdrop of policy drivers, starting with the entrenchment of inflation, the era of 100-year lifespans, and the introduction of the new NISA.

In this environment, Japan Post Insurance and Daiwa Securities Group held discussions and reached the conclusion that collaboration between the two companies, which have different strengths and management resources, would enhance Daiwa Asset Management’s investment management capabilities and prowess in providing products and services, and would also be beneficial for Japan Post Insurance to achieve diversification of revenue sources and strengthening of asset management capabilities. Consequently, the companies agreed to enter the Alliance.

By organically linking asset managers and asset owners through the Alliance, Daiwa Asset Management will promote the sophistication of its investment management capabilities and become even more trusted and valued by investors and the market, thereby contributing to promoting Japan as a leading asset management center.

Details of the Alliance

Collaboration in the asset management field

• Japan Post Insurance will entrust Daiwa Asset Management with the management of assets currently managed by Japan Post Insurance.
• Japan Post Insurance and Daiwa Asset Management will collaborate on Daiwa Asset Management’s full-scale entry into the investment advisory business domain, including the alternative investment field.

Personnel exchange

• Japan Post Insurance and Daiwa Asset Management will conduct a mutual exchange of asset management personnel with the aim of expanding their respective revenue bases, enhancing investment sophistication, and developing dedicated professionals.

Please follow us to read more about Finance & FinTech in Japan, like hundreds of readers do every day. We invite you to also register for our short weekly digest, the “Japan FinTech Observer”, on Medium or on LinkedIn. Our global Finance & FinTech Podcast, “eXponential Finance” is also available through its own LinkedIn newsletter, or via our Podcast Page.

Should you live in Tokyo, or just pass through, please also join our meetup. In any case, our YouTube channel and LinkedIn page are there for you as well.