Meiji Yasuda Life and Talanx will work together in the global ...
Meiji Yasuda Life and Talanx will work together in the global ... Meiji Yasuda Life and Talanx will work together in the global ...
Meiji Yasuda Life and Talanx will work together in the global insurance market Companies agree on capital and business alliance Hanover/Tokyo: 4 November 2010: Meiji Yasuda Life Insurance Company, Tokyo, Japan, (President: Kenji Matsuo, “Meiji Yasuda Life”) and Talanx AG, Hannover, Germany, (CEO: Herbert K. Haas, “Talanx”) today signed definitive agreements on a strategic alliance consisting of capital and business alliances. The primary objective of this strategic alliance is to exploit joint business opportunities in the increasingly globalized insurance markets in order for both companies to pursue sustainable growth. Meiji Yasuda Life has been aiming to strengthen its overseas business in order to enhance its growth and diversify its business portfolio, while it enjoys the strong business platform in the Japanese life insurance market. Talanx is planning to further grow its primary insurance business in selected markets with emphasis, among others, on Central and Eastern Europe. Talanx is also aiming to expand its existing industrial business in Japan. Mr. Haas explained, “We welcome the capital and business alliance with Meiji Yasuda Life which will contribute to proactively develop new opportunities in growing international markets together, leveraging two companies’ strengths.” Mr. Matsuo mentioned, “We have reached a common understanding that the two companies are best partners and we will jointly accelerate global business development based on the long lasting relationship, especially in the growing Central and Eastern Europe market.” The capital alliance consists of a convertible perpetual subordinated bond in the principal amount of 300 million euros which will be issued by Talanx and acquired and held by Meiji Yasuda Life. The perpetual subordinated bond has been structured to comply with the latest Solvency II advice for Tier 1 capital treatment and, in the case of an IPO of Talanx, it will be converted into common stocks of Talanx AG. After the IPO, Meiji Yasuda Life will be an important shareholder of Talanx. The business alliance of identifying and realizing joint business opportunities will be carried out through Talanx’s subsidiary HDI-Gerling International, the intermediate holding company for the primary insurance business outside Germany. Meiji Yasuda Life and Talanx will pursue joint business opportunities globally, including an establishment of joint ventures between the two companies, through the Steering Committee consisting of senior management officers from both companies. The Steering Committee will play a role in supervising and accelerating the strategic alliance. Meiji Yasuda Life will nominate two out of six Supervisory Board members of
<strong>Meiji</strong> <strong>Yasuda</strong> <strong>Life</strong> <strong>and</strong> <strong>Talanx</strong> <strong>will</strong> <strong>work</strong> <strong>toge<strong>the</strong>r</strong> <strong>in</strong> <strong>the</strong> <strong>global</strong> <strong>in</strong>surance market<br />
Companies agree on capital <strong>and</strong> bus<strong>in</strong>ess alliance<br />
Hanover/Tokyo: 4 November 2010: <strong>Meiji</strong> <strong>Yasuda</strong> <strong>Life</strong> Insurance Company, Tokyo, Japan,<br />
(President: Kenji Matsuo, “<strong>Meiji</strong> <strong>Yasuda</strong> <strong>Life</strong>”) <strong>and</strong> <strong>Talanx</strong> AG, Hannover, Germany, (CEO:<br />
Herbert K. Haas, “<strong>Talanx</strong>”) today signed def<strong>in</strong>itive agreements on a strategic alliance consist<strong>in</strong>g<br />
of capital <strong>and</strong> bus<strong>in</strong>ess alliances. The primary objective of this strategic alliance is to exploit jo<strong>in</strong>t<br />
bus<strong>in</strong>ess opportunities <strong>in</strong> <strong>the</strong> <strong>in</strong>creas<strong>in</strong>gly <strong>global</strong>ized <strong>in</strong>surance markets <strong>in</strong> order for both<br />
companies to pursue susta<strong>in</strong>able growth.<br />
<strong>Meiji</strong> <strong>Yasuda</strong> <strong>Life</strong> has been aim<strong>in</strong>g to streng<strong>the</strong>n its overseas bus<strong>in</strong>ess <strong>in</strong> order to enhance its<br />
growth <strong>and</strong> diversify its bus<strong>in</strong>ess portfolio, while it enjoys <strong>the</strong> strong bus<strong>in</strong>ess platform <strong>in</strong> <strong>the</strong><br />
Japanese life <strong>in</strong>surance market. <strong>Talanx</strong> is plann<strong>in</strong>g to fur<strong>the</strong>r grow its primary <strong>in</strong>surance<br />
bus<strong>in</strong>ess <strong>in</strong> selected markets with emphasis, among o<strong>the</strong>rs, on Central <strong>and</strong> Eastern Europe.<br />
<strong>Talanx</strong> is also aim<strong>in</strong>g to exp<strong>and</strong> its exist<strong>in</strong>g <strong>in</strong>dustrial bus<strong>in</strong>ess <strong>in</strong> Japan.<br />
Mr. Haas expla<strong>in</strong>ed, “We welcome <strong>the</strong> capital <strong>and</strong> bus<strong>in</strong>ess alliance with <strong>Meiji</strong> <strong>Yasuda</strong> <strong>Life</strong> which<br />
<strong>will</strong> contribute to proactively develop new opportunities <strong>in</strong> grow<strong>in</strong>g <strong>in</strong>ternational markets <strong>toge<strong>the</strong>r</strong>,<br />
leverag<strong>in</strong>g two companies’ strengths.” Mr. Matsuo mentioned, “We have reached a common<br />
underst<strong>and</strong><strong>in</strong>g that <strong>the</strong> two companies are best partners <strong>and</strong> we <strong>will</strong> jo<strong>in</strong>tly accelerate <strong>global</strong><br />
bus<strong>in</strong>ess development based on <strong>the</strong> long last<strong>in</strong>g relationship, especially <strong>in</strong> <strong>the</strong> grow<strong>in</strong>g Central<br />
<strong>and</strong> Eastern Europe market.”<br />
The capital alliance consists of a convertible perpetual subord<strong>in</strong>ated bond <strong>in</strong> <strong>the</strong> pr<strong>in</strong>cipal<br />
amount of 300 million euros which <strong>will</strong> be issued by <strong>Talanx</strong> <strong>and</strong> acquired <strong>and</strong> held by <strong>Meiji</strong><br />
<strong>Yasuda</strong> <strong>Life</strong>. The perpetual subord<strong>in</strong>ated bond has been structured to comply with <strong>the</strong> latest<br />
Solvency II advice for Tier 1 capital treatment <strong>and</strong>, <strong>in</strong> <strong>the</strong> case of an IPO of <strong>Talanx</strong>, it <strong>will</strong> be<br />
converted <strong>in</strong>to common stocks of <strong>Talanx</strong> AG. After <strong>the</strong> IPO, <strong>Meiji</strong> <strong>Yasuda</strong> <strong>Life</strong> <strong>will</strong> be an important<br />
shareholder of <strong>Talanx</strong>.<br />
The bus<strong>in</strong>ess alliance of identify<strong>in</strong>g <strong>and</strong> realiz<strong>in</strong>g jo<strong>in</strong>t bus<strong>in</strong>ess opportunities <strong>will</strong> be carried out<br />
through <strong>Talanx</strong>’s subsidiary HDI-Gerl<strong>in</strong>g International, <strong>the</strong> <strong>in</strong>termediate hold<strong>in</strong>g company for <strong>the</strong><br />
primary <strong>in</strong>surance bus<strong>in</strong>ess outside Germany. <strong>Meiji</strong> <strong>Yasuda</strong> <strong>Life</strong> <strong>and</strong> <strong>Talanx</strong> <strong>will</strong> pursue jo<strong>in</strong>t<br />
bus<strong>in</strong>ess opportunities <strong>global</strong>ly, <strong>in</strong>clud<strong>in</strong>g an establishment of jo<strong>in</strong>t ventures between <strong>the</strong> two<br />
companies, through <strong>the</strong> Steer<strong>in</strong>g Committee consist<strong>in</strong>g of senior management officers from both<br />
companies. The Steer<strong>in</strong>g Committee <strong>will</strong> play a role <strong>in</strong> supervis<strong>in</strong>g <strong>and</strong> accelerat<strong>in</strong>g <strong>the</strong> strategic<br />
alliance. <strong>Meiji</strong> <strong>Yasuda</strong> <strong>Life</strong> <strong>will</strong> nom<strong>in</strong>ate two out of six Supervisory Board members of
HDI-Gerl<strong>in</strong>g International <strong>and</strong> <strong>will</strong> dispatch several employees to <strong>Talanx</strong>. Torsten Leue, Chief<br />
Executive Officer of HDI-Gerl<strong>in</strong>g International, expressed his satisfaction with <strong>the</strong> fact that <strong>the</strong><br />
company's Supervisory Board <strong>will</strong> ga<strong>in</strong> <strong>in</strong> <strong>in</strong>ternational experience by <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> <strong>Meiji</strong> <strong>Yasuda</strong><br />
<strong>Life</strong> representatives.<br />
About <strong>Meiji</strong> <strong>Yasuda</strong> <strong>Life</strong> Insurance Company<br />
In 2004, <strong>Meiji</strong> <strong>Yasuda</strong> <strong>Life</strong> was established through <strong>the</strong> merger between <strong>Meiji</strong> <strong>Life</strong> <strong>and</strong> <strong>Yasuda</strong> <strong>Life</strong>, both<br />
companies with a tradition of more than 100 years. It is one of Japan's largest life <strong>in</strong>surers <strong>and</strong> offers<br />
<strong>in</strong>dividual life <strong>and</strong> annuities, group life <strong>and</strong> pensions, <strong>and</strong> <strong>in</strong>vestment products as well as medical <strong>and</strong><br />
accident coverage. The company has operations <strong>in</strong> Asia, Europe, <strong>and</strong> North America. The Tokyo-based<br />
company posted a premium <strong>in</strong>come of 3,282 billion yen (30 billion euros) <strong>in</strong> <strong>the</strong> fiscal year 2009.<br />
About <strong>Talanx</strong><br />
With premium <strong>in</strong>come of nearly 21 billion euros (2,300 billion yen) for 2009, <strong>the</strong> <strong>Talanx</strong> Group is<br />
Germany's third-largest <strong>in</strong>surance group. <strong>Talanx</strong> operates as a multi-br<strong>and</strong> provider. Its br<strong>and</strong>s <strong>in</strong>clude<br />
HDI <strong>and</strong> HDI-Gerl<strong>in</strong>g provid<strong>in</strong>g property/casualty <strong>and</strong> life <strong>in</strong>surance as well as Hannover Re, one of <strong>the</strong><br />
world's lead<strong>in</strong>g re<strong>in</strong>surers. The Hanover-based Group is active <strong>in</strong> 150 countries. The rat<strong>in</strong>g agency<br />
St<strong>and</strong>ard & Poor's has given <strong>Talanx</strong> a f<strong>in</strong>ancial strength rat<strong>in</strong>g of A+/stable (very good).<br />
About HDI-Gerl<strong>in</strong>g International Hold<strong>in</strong>g AG<br />
HDI-Gerl<strong>in</strong>g International Hold<strong>in</strong>g AG (<strong>the</strong> future <strong>Talanx</strong> International AG), headquartered <strong>in</strong> Hannover,<br />
Germany, is a subsidiary of <strong>Talanx</strong> AG <strong>and</strong> <strong>the</strong> parent company of <strong>the</strong> foreign subsidiaries <strong>in</strong> <strong>the</strong> Private &<br />
Commercial L<strong>in</strong>es division. HDI-Gerl<strong>in</strong>g International Hold<strong>in</strong>g – which <strong>will</strong> be renamed <strong>Talanx</strong><br />
International AG <strong>in</strong> January 2011 – operates <strong>in</strong>surance bus<strong>in</strong>ess <strong>in</strong> thirteen counties (life <strong>in</strong>surance<br />
bus<strong>in</strong>ess <strong>in</strong> seven countries), ma<strong>in</strong>ly <strong>in</strong> South America <strong>and</strong> Central <strong>and</strong> East Europe <strong>and</strong> provide <strong>the</strong> local<br />
direct <strong>in</strong>surance bus<strong>in</strong>ess outside Germany.
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