THE HAGUE, Netherlands and TOKYO, August 27 /PRNewswire-FirstCall/ --
- Operations Expected to Begin by Year-end
- Joint Venture to Initially Focus on Variable Annuities
The life insurance joint venture between AEGON and Sony Life has obtained
final approval from the Japanese regulatory authorities to launch business
operations later this year. The 50-50 joint venture - known as AEGON Sony
Life Insurance Co., Ltd. (ASLIC) - will initially focus on the sale of
variable annuity products which will be distributed through Sony Life's
'Lifeplanner' sales employees, as well as banks and other financial
institutions. ASLIC is expected to begin operations in early December.
'We're pleased that the regulatory authorities in Japan have granted a
license to our joint venture,' said AEGON CEO Alex Wynaendts. 'We believe
that the market for variable annuities in Japan offers strong prospects for
growth over the long-term. By combining our product knowledge and risk
management expertise with Sony Life's highly respected brand name and
distribution capabilities, we are in a strong position to maximize the
opportunities of the Japanese market.'
'We established ASLIC as a life insurance company which focuses and
specializes in annuity products,' said Sony Life's President Taro Okuda.
'Through the operations of ASLIC, we shall fully enter into the bancassurance
business in Japan. At the same time, annuity products produced by ASLIC will
make Sony Life's 'Lifeplanner' sales employees offer all the more solid
financial services for the customers.'
Sony Life regards the partnership, established in 2007, as an opportunity
to further strengthen its 'Lifeplanner' distribution network, particularly by
broadening the range of financial products available to customers in Japan.
For AEGON, the joint venture with Sony Life marks another step in expanding
its operations in Asia. In recent years, the company has built up operations
in both China and India, where economic growth and rising levels of personal
wealth have led to increased demand for life insurance, pensions and other
long-term investment products.
Japan is one of the largest pension markets in the world. Despite the
financial crisis, demand for variable annuities in Japan is expected to grow
in the years ahead, particularly as the country's population ages and more
savers look to supplement existing state pensions. Japan already has one of
the oldest populations in the world, with more than 40% of the population
currently over the age of fifty. In addition, a significant proportion of
individual savings is held either in cash or on deposit.
