Orix Life Insurance Corp. is buying Hartford Life Insurance K.K. for $895 million, adding to an M&A streak in the insurance sector.
Hartford Life Insurance K.K., headquartered in Tokyo, provides minimum death benefit and minimum income benefit insurance policies. The company, which stopped selling insurance products in 2009, now focuses on policy management. The target is a subsidiary of insurance company the Hartford Financial Services Group Inc. (NYSE: HIG), which announced it was selling Hartford Life International Ltd. to Berkshire Hathaway (NYSE:-BRK.A)-owned Columbia Insurance Co. for $285 million in June.
The deal is expected to close in July.
Tokyo-based Orix Life provides mainly medical and cancer insurance policies. After the transaction closes, the two companies will merge, which Orix Life says will enhance its capital strength and improve management. The buyer is a subsidiary of insurer Orix Corp., which made a $2.6 billion deal for Rabobank Groep's asset management unit in February. Orix is headed by CEO Yoshihiko Miyaushi.
Sidley Austin partners Sean Keyvan, Perry Shwachman, Tomoo Nishikawa and Akira Nakazawa advised Hartford on the deal.
For more on the insurance sector, see "Racking Up Regional Insurers."