American investment companies consider the Japanese insurance market to be the most attractive for making a profit. This is reported by foreign media.
Credit companies controlled by KKR&Co., Apollo Global Management Inc. and other major investment companies are entering into deals to manage billions of life insurance policies and annuities in Japan. As part of reinsurance transactions, Japanese insurance companies reduce their own risks by transferring part of the obligations to pay future benefits to insurance divisions of management companies, which in exchange for assistance in fulfilling financial obligations receive part of the assets of insurance companies in order to invest in the most popular high-yield private loans at the moment.
Japan, the second largest economy in Asia with a population of over 124 million, is one of the largest insurance markets in the world, with a combined value of $5.8 trillion. KKR estimates that about $3 trillion in assets could be reinsured, but currently reinsurance includes only 1% of this amount.
Apollo and KKR operate large credit companies, including Athene Holding Ltd. and Global Atlantic Financial Group Ltd., which have been involved in reinsurance in the United States for many years. Japan is a more attractive source of new assets against the background of the oversaturation of the American insurance market.
New capital and accounting rules coming into force in 2025 for Japanese insurance companies will require more accurate disclosure of the value of assets, pushing insurers to conclude reinsurance contracts for previously sold policies.
KKR&Co. — an American investment company with headquarters in New York (USA). The company specializes in private equity and asset management.
Apollo Global is an American global alternative investment management company. The headquarters is located in New York (USA). Among the most well-known clients are ADT Inc., Cox Media Group, Intrado, Rackspace, Redbox, and others.
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