Japan Post Insurance, Daiwa Securities agree capital tie-up

Japan Post Insurance and Daiwa Securities Group have announced a capital and business tie-up in asset management. The alliance comes amid moves by the government to encourage a shift from savings to investment.

The firms said in a statement on Wednesday that Japan Post Insurance will acquire a 20 percent stake in Daiwa's asset management unit for 52.5 billion yen, or about 340 million dollars. Japan Post Insurance will take up new shares issued in Daiwa Asset Management.

Under the agreement, Japan Post Insurance will entrust Daiwa with managing part of its assets. The two will also collaborate on a full-scale entry into the investment advisory business.

The companies say the alliance will diversify Japan Post's revenue sources, and expand the scale of Daiwa's asset management operation.