Prudential Financial to take failed Yamato Life in Japan in

 

Tuesday, Mar 24,2009, 10:24:04 PM   Click:

Iris Lai
TOKYO, March 24, 2009 (AM Best via COMTEX) --

Gibraltar Life Insurance Co. Ltd [85,460], a Japanese subsidiary of the U.S. Prudential Financial Inc [58182], is to take no more Yamato Life Insurance Co., [84744] in June with the establishment of a Operation new life in Japan.
As a wholly owned subsidiary of Gibraltar Life, Life will be renamed Yamato Japan Prudential Financial Life Insurance Co, after approval by the court of Tokyo. Gibraltar life then injected 6.99 trillion yen (U.S. $ 71.2 million) in the new operation, which will focus on bancassurance.

The new operation will improve the footprint of Prudential Financial, in Japan, where he already has two units of life insurance, Prudential Life Insurance Co., [86,614] and the life of Gibraltar, and the management of real estate investment and management units.

Prudential Financial Japan aims to restructure life itself as a company that sells insurance through bancassurance channels, where he sees great potential, "said Mitsuo KURASHIGE, President and CEO of Gibraltar Life.

Under the transfer plan, KURASHIGE said: "Eligible employees Yamato Life moves in Gibraltar life to create more synergy in operations and sales force.

Yamato Life went into bankruptcy last October and was under court supervision. The failure of liabilities life insurance in excess of the assets of 64.3 billion yen as of October 17 last year.

Under the rehabilitation plan, Gibraltar Life will pay 3.2 billion yen to acquire the business of the Rights of Yamato Life. Gibraltar life resume Yamato Life's 151,000 policies in force.

The life insurance policies Protection Corp. of Japan, managed by the government safety net funded by insurers, will provide 27.8 billion yen to support the insurer does not have a negative net worth. The remaining 33.3 billion yen will be covered by the insurer of the liability reserves set aside for insurance payments, Yamato Life said in a statement.

Under the rehabilitation plan, Yamato Life will conduct a 10% reduction in its reserves set aside for future benefits and reduce the average rate of return guaranteed to policyholders at 1%. The insurer has also applied a discount of 20% to 2% over the next 10 years to reduce the political withdrew.

Prudential Insurance Co. of America currently has a Best's financial strength rating of A + (Superior).