Japanese Insurers Eye Global Expansion Amid Domestic Market Constraints: AM Best
Kathmandu – With Japan’s domestic insurance market facing stagnation due to a shrinking and aging population, major Japanese insurers are accelerating international expansion and acquisitions to secure long-term growth, according to a new commentary from AM Best.
The report, titled “Japan Insurers See Growth Through Reinsurance, Acquisitions,” highlights the country’s highly consolidated non-life insurance sector, where growth is limited by market saturation. In response, insurers are diversifying revenue through strategic investments in markets such as the US and Australia.
Japanese-owned insurers in the US have consistently reported rising direct premiums, exceeding $68 billion in 2024 alone. Notable deals like Meiji Yasuda Life’s acquisition of Legal & General’s US business and Nippon Life’s planned acquisition of Resolution Life underscore the momentum.
In addition, asset-intensive reinsurance (AIR) transactions are gaining traction in Japan’s life insurance segment, aimed at enhancing capital efficiency and managing interest rate risks.
(AM Best is the largest credit rating agency in the world specializing in the insurance industry)