UPDATE 1-MS&AD in talks to buy out MetLife Japan JV -source

* In talks to buy MetLife’s 49 pct stake in JV-source

* JV specialises in annuity products sold through banks

(Adds background)

TOKYO, Oct 28 (BestGrowthStock) – MS&AD Insurance (8725.T: ), Japan’s
largest property-casualty insurer, is in talks with MetLife Inc
(MET.N: ) to buy out their Japan annuity insurance joint venture, a
source close to the talks said on Thursday.

MetLife is set to acquire American Life Insurance Co (Alico)
from AIG (AIG.N: ), a deal which would significantly boost
MetLife’s presence in Japan and other countries.

MS&AD is in talks to buy out MetLife’s 49 percent stake in
Mitsui Sumitomo MetLife Insurance, which sells annuity products
through bank counters, said the source, who declined to be named
because the negotiations were private.

The joint venture, which started in 2005, had revenues from
premiums of 443.6 billion yen ($5.4 billion) for the year ending
in March, against MS&AD’s overall net premiums of 2.52 trillion
yen.

Through the acquisition of Alico, MetLife will see a sharp
lift in Japan, the world’s second-largest life insurance market,
which accounts for as much as 70 percent of Alico’s pretax
operating income.

MS&AD said nothing had been decided regarding the matter.

Shares of MS&AD fell 1.4 percent to 1,978 yen,
underperforming a 0.2 percent decline in the benchmark Nikkei
average (.N225: )
(Reporting by Taiga Uranaka; Editing by Edmund Klamann and
Joseph Radford)

UPDATE 1-MS&AD in talks to buy out MetLife Japan JV -source