Dai-ichi Life Insurance Said to Plan Raising 300 Billion Yen in Capital
Dai-ichi Life Insurance Co. plans to raise 300 billion yen ($3.6 billion) in capital by adding perpetual subordinated loans as the industry adopts new solvency rules, a person familiar with the matter said.
Dai-ichi Life, Japan’s second-largest life insurer, is in talks with more than 20 financial institutions that may issue the loans, the person said, declining to be identified because the information is private.
“We are considering refinancing subordinated loans,” said Makoto Atarashi, a Tokyo-based spokesman of the insurer, declining to confirm the amount.
The capital-raising plan comes after Dai-ichi Life President Koichiro Watanabe last week said the insurer may boost capital by issuing hybrid securities that are cheaper than common shares to prepare for the expected regulatory changes.
The Nikkei newspaper reported the amount of the loan earlier.
To contact the reporters on this story: Komaki Ito in Tokyo at kito@bloomberg.net; Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net
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