Nippon Life to buy 35% of Myanmar's Grand Guardian Life Insurance
BANGKOK, NNA - Nippon Life Insurance Co. of Japan will buy a 35 percent stake in an insurance firm under Myanmar's conglomerate Shwe Taung Development Co. to enter the underdeveloped market.
The Japanese leading life insurer said Friday it has agreed with Grand Guardian Insurance Holding Public Co. to pay $21 million for the share of its life insurance arm Grand Guardian Life Insurance Co.
Nippon Life expects to complete the transaction sometime between September and October, subject to the relevant regulatory approval, and will rename the joint venture Grand Guardian Nippon Life Insurance Co., it said in a statement.
Myanmar opened the insurance sector in 2013 by granting licenses to local private insurers after nearly half a century of monopoly under the state-backed Myanmar Insurance Co.
The government announced in January the opening of the sector to foreign firms, allowing them up to 35 percent ownership of insurers.
Nippon Life agreed with Grand Guardian Insurance Holding in April to form a joint venture to tap the market in an early stage of development, the Japanese company said. (NNA/Kyodo)