TOKYO Japanese e-commerce giant Rakuten announced on Monday that it is planning to enter the general insurance sector with the acquisition of Asahi Fire & Marine Insurance Co. Ltd, owned by the Nomura financial group.
In a statement, the company said at the meeting of its Board of Directors held today, it resolved to acquire all of the Common Stock and Class Stock of the Asahi Fire & Marine Insurance Co. Ltd.
In its statement, Nomura Holdings Inc. said it had reached an agreement with Rakuten for the Asahi Fire and Marine Insurance Co. Ltd.
Rakuten said that the anticipated value of the acquired shares would come to 40-50 billion yen ($370-$460 million).
With the purchase of Asahi Fire & Marine Insurance Co. Ltd, which Rakuten plans to make into a wholly-owned subsidiary, the Japanese e-commerce giant will make an entry into the nonlife insurance sector.
In 2013, Rakuten expanded into the life insurance sector with the acquisition of AIRIO Life Insurance Co. Ltd, which subsequently changed its name to Rakuten Life Insurance.
The purchase is part of the diversification and expansion strategy of Rakuten, which has already announced its entry into sectors as diverse as the home-sharing business, the online grocery business and the drone delivery service, which is still in the trial phase.