Printer Friendly

NIPPON LIFE SETS UP U.S. COMPANY; FIRST JAPANESE OWNED OPERATION

 NIPPON LIFE SETS UP U.S. COMPANY; FIRST JAPANESE OWNED OPERATION
 NEW YORK, Dec. 26 /PRNewswire/ -- Nippon Life Insurance Company today announced that all necessary regulatory approvals in Iowa have been received for its newly-launched Nippon Life Insurance Company of America unit to start underwriting business next year.
 This is the first life insurance company established in the U.S. by a Japanese parent and will be domiciled in Iowa.
 The company plans to offer group life, health disability and pension, underwrite their risk and perform direct servicing.
 Akira Ogata has been named president of the new company.
 Nippon Life Insurance Company of America will market primarily to the established 3,335 Japanese subsidiary company operations, presently doing business in the U.S.
 Nippon Life Insurance Company of America was created by purchasing an inactive shell company, New England General, for $9 million, including $1.6 million for the license to do business in 44 U.S. states and the District of Columbia. New England General had been owned by The New England, based in Boston.
 The Travelers Insurance Company, based in Hartford, Conn., and the Principal Financial Group of Des Moines, Iowa, will be administrative companies in the new venture.
 The Travelers, with whom Nippon Life has maintained a longstanding relationship of 20 years, will provide administrative services in support of group life, health and long-term disability products.
 The Principal will provide investment services and administrative support for group pension products.
 Nippon Life Insurance Company of America will assume many of the tasks currently carried out by NLI Insurance Agency Inc. (formerly Nissei Life America).
 NLI Insurance Agency Inc. is a wholly-owned subsidiary that Nippon Life established in 1984 to market for Japanese subsidiaries operating in the United States. Through offices in New York, Los Angeles and Chicago, it has been servicing Japanese clients in concert with U.S. life insurers.
 Ogata, new chief executive for Nippon Life Insurance Company of America, serves as president of NLI Insurance Agency Inc.
 The new company, domiciled in Des Moines, Iowa, will get a $43 million capital infusion from Nippon Life in Japan.
 There will be an estimated 40 employees when the company begins business next year, including 16 being sent from Japan. In addition to Des Moines, executive offices will be located in New York City and branch locations are being established in Los Angeles and Chicago.
 The company is currently seeking licenses in those states where it cannot sell its products. NLI Insurance Agency Inc. will provide services for the present time in those states.
 "We will take full advantage of what we have learned these past years working in the American insurance market," Ogata said.
 "Moreover, we intend to design employee benefits plans, provide a full range of employee services in Japanese and offer a toll-free telephone line to better serve our customers. And, by doing so, we hope to provide even more extensive services to Japanese-owned companies in the U.S. than we have previously offered."
 Employee benefits products being offered by Nippon Life Insurance Company of America will include group life, group health, corporate pensions and long term disability insurance.
 "This will be a joint team effort with the Travelers and The Principal to bring quality service to our customers," added Ogata. "Our partners' unique administrative and servicing skills will enable us to get on the ground running."
 The parent company, Nippon Life, in Japan, is the world's largest life insurance corporation with an estimated US$196 billion in assets and US$36 billion in premium income as of March.
 Fact Sheet
 WHO: Nippon Life Insurance Company -- the world's largest life insurer.
 WHAT: Has created a wholly-owned subsidiary, Nippon Life Insurance Company of America by acquiring New England General, an inactive unit of The New England, for $9 million. This is the first life insurance company to be established in the U.S. by a Japanese parent.
 WHERE: The new company, legally domiciled in Iowa, will also have its executive office in New York City and branch offices in Los Angeles and Chicago.
 WHEN: It will commence on Jan. 1, 1992. It is licensed to do business in 44 U.S. states and the District of Columbia. Licenses to engage in business activity in the remaining U.S. states (New York, Connecticut, North Carolina, New Hampshire, Wyoming and Maine) and possessions will be sought.
 WHY: The new company will offer group life, health, long term disability and pensions to Japanese-owned and affiliated companies in the U.S. Nippon Life Insurance Company of America will offer these products as well as underwrite the risk and perform direct servicing.
 HOW: Collection of group life, health and long-term disability premiums and benefits payments will be carried out by The Travelers, Hartford, Conn., the ninth largest U.S. life insurer in assets. The Principal Financial Group, Des Moines -- the 11th largest U.S. insurer in assets -- will provide investment services and administrative support for group pension products.
 -0- 12/26/91
 /CONTACT: Andrew S. Edson of Padilla Speer Beardsley, 212-752-8338, or home, 516-931-0873, for Nippon Life Insurance/ CO: Nippon Life Insurance Company ST: New York, Iowa IN: INS SU:


KD-SM -- NY024 -- 5382 12/26/91 17:53 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 26, 1991
Words:867
Previous Article:NEW YORK STOCK EXCHANGE CLOSING, THURSDAY, DEC. 26 /PRN/
Next Article:SOUTHERN CALIFORNIA EDISON AND FORD MOTOR CO. ANNOUNCE DEMONSTRATION FLEET OF ELECTRIC VEHICLES
Topics:


Related Articles
NIPPON LIFE TO START INSURANCE COMPANY IN THE U.S.
/C O R R E C T I O N -- NIPPON LIFE/
AXA Acquires a Controlling Interest in the Japanese Life Insurance Company Nippon Dantai.
Nippon Life 'AA' Ratings Affirmed.
CORRECTION: DCR Reaffirms 'D-1' Commercial Paper Rating for AXA.
S&P Affirms Nippon Life Insurance Comapny of America 'AA' Ratings.
S&P Affirms Ratings on Nippon Life at 'AA'; Outlook Stable.
Nippon Life to set up joint venture in China.
LEAD: Nippon Life, Mitsui Sumitomo Insurance to tie up in Thailand.
Nippon Life woos Korean firms in U.S.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters