Japan Life Insurance has announced that it will acquire Nichii Holdings, the parent company of Nichii Gakuen, the largest nursing care business, for about 2,100 billion yen. With this acquisition, Japan Life will enter the nursing care industry.

Nichii Gakuen operates the largest nursing care business in the industry, and by acquiring its parent company, Nichii Holdings, Japan Life will grow into a corporate group with strength in the nursing care business.

In recent years, Japan’s population decline has been progressing, and the accompanying shrinkage of the domestic insurance market is a concern. However, on the other hand, in Japan’s aging society, demand for nursing care services is increasing, and the nursing care business is expected to expand its market. Seeing the potential of this market, Japan Life decided on this acquisition.

The acquisition price is said to be about 2,100 billion yen, which will be financed entirely with available funds. Moreover, the acquisition target is said to be 99.6% of the shares held by an American investment fund.

With this acquisition, Japan Life will in the future gain an excellent position to compensate for the shrinking insurance market due to population decline and to meet the insurance needs of an aging society.