Nippon Life, the largest privately owned insurer in Japan, is setting aside US$94 million for a financial technology (fintech) venture fund as it seeks to access technology companies with high potential for growth.
The NLI Strategic Venture Investment Fund, which is managed by wholly-owned asset management arm Nippon Life Global Investors Americas (NLGI Americas), will invest in fintech initiatives such as asset management and investment infrastructure, and insurance+α areas, such as the childcare and healthcare sectors, Nippon Life said in a statement.
Insurance+α, according to Nippon Life, are areas where there are large investment opportunities
to be generated by the development of big data and AI technology.
“Through its investment in this fund, Nippon Life is expecting to be able to gather information, co-invest in high growth venture companies, jointly work on and also co-create new products and services, solve various social issues, and achieve an investment return of “+α” for the insurance policyholder.” the company said.
It added that the NLI Strategic Venture Investment Fund will work together with a new Innovation Development Office that will be formed within the fiscal year.
Nippon Life, which has been investing in overseas venture capital funds since the 1970s, will leverage the Silicon Valley networks of NLGI Americas and its other units, and will access well-known start-up accelerators such as Y Combinator in order to facilitate the growth of the firms it will invest in.
