Japanese insurer Dai-ichi Life Co is in advanced talks to purchase Protective Life Corp of the United States, a source with direct knowledge of the matter said, in a deal likely to be worth over $5 billion, the biggest acquisition by a Japanese insurer.Dai-ichi Life, Japan's second-largest private-sector life insurer, plans to buy 100 percent of Birmingham, Alabama-based Protective Life, said the source, who was not authorised to discuss the matter publicly. If completed, the deal would be the latest in a string of overseas acquisitions by Japanese insurers, seeking to offset weak future prospects at home amid a rapidly ageing population.In a statement, Dai-ichi Life said, "It is true that we are considering an acquisition of a U.S. life insurance company. But nothing has been decided." A spokesman failed to comment further.The Nikkei business daily, which first reported the talks, said a deal would likely top 500 billion yen ($4.9 billion). The U.S. company has a market capitalisation of $4 billion and posted a net profit of $393.5 million in 2013.
Protective Life Corporation is a holding company. Shares of PL traded higher by 0.35% or $0.18/share to $52.30. In the past year, the shares have traded as low as $36.36 and as high as $54.48. On average, 364591 shares of PL exchange hands on a given day and today's volume is recorded at 338930.
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