The Asia-Pacific insurance market has seen significant activity from February 10 to 14, with major mergers and acquisitions, as well as positive growth trends, according to market statistics released this week.
Meiji Yasuda’s $2.3 Billion Deal
Meiji Yasuda Life Insurance Company is set to acquire Legal & General America, Inc. (LGA) and its U.S. subsidiary, Banner Life, for $2.3 billion. As part of the deal, Meiji Yasuda will also secure a 5% stake in Legal & General Group Plc. The acquisition is expected to have a substantial impact on Meiji Yasuda’s global operations. The company forecasts its overseas insurance premiums will more than double to over $6.6 billion (¥1 trillion), with core profits increasing to $660 million (¥100 billion), up from $603.24 million (¥91.4 billion) prior to the acquisition.
Fitch Ratings anticipates that the acquisition will bolster Meiji Yasuda’s credit profile and enhance its global diversification.
Allianz and IAG Pursue RAC Business
Meanwhile, Allianz SE and Insurance Australia Group Ltd. (IAG) are reportedly in talks to bid for the insurance division of the Royal Automobile Club of Western Australia (RAC), according to sources cited by Bloomberg.
In another significant move, Prudential is exploring the possibility of listing its India-based ICICI Prudential Asset Management Company Limited. This would involve a partial divestment of its shares, although details of the listing are yet to be confirmed.
Regional Investment Trends
On the investment front, insurance investors are increasingly looking to expand their global portfolios in 2025. According to Aviva Investor’s private markets study, 53% of respondents plan to increase international allocations this year. Across the Asia-Pacific region, 64% of investors are expected to boost their investments outside of their local markets, with Japan, Singapore, and South Korea seeing particular interest.
Positive Growth Across Key Markets
In terms of regional market performance, Taiwan’s insurance industry has seen impressive growth, with a nearly 250% increase in earnings for December 2024, totaling $10.3 billion (NT$341.5 billion). Life insurers contributed 92.4% of this total, according to data from Taiwan’s Insurance Bureau.
Singapore’s life insurance sector also recorded strong growth, with a 19.7% year-on-year increase in 2024. Total new business premiums reached $4.34 billion (S$5.87 billion), driven primarily by higher demand for annual premium products, according to the Life Insurance Association of Singapore.
Meanwhile, the Philippine insurance market reported a 0.06 percentage point increase in insurance penetration, reaching 1.67% of GDP. This reflects the faster growth of insurance premiums compared to the country’s 8.84% economic expansion, as reported by the Insurance Commission. Additionally, the fourth quarter of 2024 saw total premiums rise by 12.81% compared to the previous year.
Overall, the latest figures indicate robust growth across the Asia-Pacific insurance market, with continued optimism for the year ahead.
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