The Japanese subsidiary of
), Aflac Japan recently inked a deal with Japan Post Holdings, a
Japanese entity that operates post stations, banks and insurance
businesses, to expand their existing partnership. The two
companies have been partners since 2008.
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Japan Post group comprises of Japan Post Holdings and three of
its operating subsidiaries- Japan Post Co. Ltd., Japan Post
Insurance Co. Ltd. (Kampo), and Japan Post Bank Co. Ltd. Through
these subsidiaries, Japan Post Holdings delivers financial
products and provides postal services to post offices across
Japan Post Holdings has been distributing Aflac Japan's cancer
insurance products through its post offices across Japan for the
past five years. Under the extended agreement, Japan Post
Holdings will increase the number of post offices offering
Aflac's cancer insurance products from 1,000 to 20,000.
Additionally, Aflac Japan will engage in an agency contract with
Kampo to distribute its cancer insurance products through the
latter's 79 directly managed sales offices. However, this deal is
currently pending regulatory approval. Additionally, Aflac Japan
is also planning to develop an exclusive cancer product for Japan
Post and Kampo.
Aflac has a significant presence in Japan. Cancer insurance is
gaining rapid popularity in the country. As per business reports,
about one-fourth of the total population in Japan own cancer care
insurance whereas 75% of the population is still without the
coverage. This extended deal with Japan Post group will allow
Aflac to tap this opportunity and strengthen its foothold in
Aflac has been quite active in promoting and providing its cancer
insurance products globally. The above deal is one such endeavor
by the company. Earlier this month, Aflac introduced its Cancer
Care insurance plan in New Jersey.
According to sources, Japan Post is scheduled to sell its shares
to the public and raise around $4 trillion by 2015. This is
expected to provide adequate cushioning in its cash portfolio and
fund the strategic initiatives of the company.
Aflac currently carries a Zacks Rank #3 (Hold). Among other
Stancorp Financial Group Inc.
) carry a Zacks Rank #2 (Buy) and
Employers Holdings Inc.
) carries a favorable Zacks Rank #1 (Strong Buy).