June 4 (Bloomberg) -- Dai-ichi Life Insurance Co. agreed to buy U.S. insurer Protective Life Corp. for 580 billion yen ($5.7 billion), Japan’s Yomiuri newspaper reported, without saying where it got the information.
The announcement may be made as early as today, with Protective’s management likely to stay on after the takeover, according to the report.
Dai-ichi, based in Tokyo, is among Japanese insurers venturing abroad as shrinking population at home erodes demand in the domestic market. The acquisition will give Dai-ichi access to clients across the U.S.
Dai-ichi’s board set a meeting today to decide on the acquisition, Nikkei reported. The deal is likely to be completed this year, according to the Nikkei. Dai-Ichi, Japan’s second- largest life insurer, plans to sell 250 billion yen of shares to help pay for the deal, the report said.
Protective, based in Birmingham, Alabama, gained 6.4 percent to $62.50 in extended New York trading after reports of the agreement appeared.