Ping An sets sights on Japan in diversification bid

Firm goes overseas to counteract weak investment returns and tighter regulations in its native market

Ping An sets sights on Japan in diversification bid

Insurance News

By Gabriel Olano

Ping An Insurance Group, China’s second largest insurer, looks to invest US$100 million in Japan as part of its efforts to diversify its investments outside of its home market.
The company will invest in private equity funds involved in sectors such as food, consumer products and services, and medical/healthcare, according to Takeshi Nakabayashi, president of Tokyo-based Ping An Japan Investment. In addition, Ping An is also planning to invest ¥9 billion (US$81.7 million) to increase its stake in Japanese residential developer Ascot Corp. to 73% as part of a plan to increase its investments in Tokyo’s real estate market.
Ping An, which has doubled the value of its assets over the past four years, is searching for investment avenues with increased returns and less currency risks amid the value of the yuan slumping versus the US dollar and tighter restrictions from the China Insurance Regulatory Commission.

Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
According to Nakabayashi, Ping An is now looking for “investment opportunities more intensively outside of China” alongside increased insurance revenue.
He added that the Japanese unit was established in November 2015, with initial plans to invest US$50 million annually through private equity, but the target has now doubled to US$100 million each year.

It has made its foray into the neighbouring market to provide funding and support for Japanese companies seeking to enter the Chinese sector, as well as to gain stable returns from the Japanese real estate sector by acquiring a listed company.

Related stories:
China Life’s net profit for 2016 takes a tumble of almost 45%
Ping An Insurance and Bank Leumi forge alliance
Ping An Insurance’s annual profits up 15%

Keep up with the latest news and events

Join our mailing list, it’s free!