Aegon Sony Life Insurance Company gains final approval to launch business in Japan
- Operations expected to begin by year-end
- Joint venture to initially focus on variable annuities
The life insurance joint venture between Aegon and Sony Life has obtained final approval from the Japanese regulatory authorities to launch business operations later this year. The 50-50 joint venture – known as Aegon Sony Life Insurance Co., Ltd. (ASLIC) – will initially focus on the sale of variable annuity products which will be distributed through Sony Life’s ‘Lifeplanner’ sales employees, as well as banks and other financial institutions. ASLIC is expected to begin operations in early December.
“We’re pleased that the regulatory authorities in Japan have granted a license to our joint venture,” said Aegon CEO Alex Wynaendts. “We believe that the market for variable annuities in Japan offers strong prospects for growth over the long-term. By combining our product knowledge and risk management expertise with Sony Life’s highly respected brand name and distribution capabilities, we are in a strong position to maximize the opportunities of the Japanese market”.
“We established ASLIC as a life insurance company which focuses and specializes in annuity products,” said Sony Life’s President Taro Okuda. “Through the operations of ASLIC, we shall fully enter into the bancassurance business in Japan. At the same time, annuity products produced by ASLIC will make Sony Life’s ‘Lifeplanner’ sales employees offer all the more solid financial services for the customers”.
Sony Life regards the partnership, established in 2007, as an opportunity to further strengthen its ‘Lifeplanner’ distribution network, particularly by broadening the range of financial products available to customers in Japan. For Aegon, the joint venture with Sony Life marks another step in expanding its operations in Asia. In recent years, the company has built up operations in both China and India, where economic growth and rising levels of personal wealth have led to increased demand for life insurance, pensions and other long-term investment products.
Japan is one of the largest pension markets in the world. Despite the financial crisis, demand for variable annuities in Japan is expected to grow in the years ahead, particularly as the country’s population ages and more savers look to supplement existing state pensions. Japan already has one of the oldest populations in the world, with more than 40% of the population currently over the age of fifty. In addition, a significant proportion of individual savings is held either in cash or on deposit. Japan has the largest pool of personal financial assets in Asia, which is projected to reach nearly USD 19 trillion in 2017.
Key figures |
Second quarter 2009 |
Full year 2008 |
Underlying earnings before tax |
EUR 404 million |
EUR 1.57 billion |
New life sale |
EUR 469 million |
EUR 2.63 billion |
Gross deposits |
EUR 6.8 billion |
EUR 40.75 billion |
Revenue generating investments (end of period) |
EUR 342 billion |
EUR 332 billion
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Aegon Group Corporate Communications & Investor Relations |
Media relations Greg Tucker + 31 (0)70 – 344 8956 E-mail: gcc-ir@aegon.com
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Investor relations Gerbrand Nijman + 31 (0)70 – 344 8305 or 877 548 9668 – toll free USA only E-mail: ir@aegon.com
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Website: www.Aegon.com |