OREANDA-NEWS. The Dai-ichi Life Insurance Company, Limited (the "Company") announces that its Board of Directors has resolved to issue new shares and make a secondary offering of shares, at the board meeting held today, as set forth below.

The mid-to long-term management plan of Dai-ichi Life Group (the "Group") consists of two pillars. First of all, the Group has begun growth initiatives to increase its market share in the domestic life insurance business. At the same time, the Group has set our aspiration to become a "global insurance group representing Asia", through the acceleration of international business development and increased profit contribution to the Group.

During the current medium-term management plan "Action D," announced in May 2013, the Group started its "Lifetime Partner -With You Project" in December 2013 in order to accelerate growth in its domestic business. The Group also targeted development of new markets through the acquisition of Sompo Japan DIY Life Insurance Company, Limited.  

In the international life business, Company have built foundations in five countries (including the latest addition to the Group, PT Pan in Dai-ichi Life of Indonesia in October 2013).In each market, the Group has been successful in enhancing the corporate value of the companies of the Group through sharing of expertise (in such fields as risk management, actuarial acumen, channel management and asset management) and provision of human and capital resources. The Group's latest achievement came when TAL group (TAL Dai-ichi Life Australia Pty Ltdand its subsidiaries) achieved the highest life insurance market share in Australia as of December 2013(as measured by in-force annualized premiums as of December 31, 2013). Moreover, in the asset management business, in 2013 Company made U.S. based Janus Capital Group Inc. an affiliate of the Group.

As for the international life business segment during "Action D," the Group has been evaluating opportunities in developed economies in order to construct a diversified business portfolio in terms of geography and the level of the life-cycle of the businesses. The Group focused on the U.S. market, where the economy continues to grow on the back of population growth and other factors, despite being one of the most developed markets. The Group also regarded the U.S. market as attractive because of the ample pool of talented executives and management expertise.

As announced in our press release "Agreement to Acquire 100% Ownership of Protective Life Corporation" dated June 4, 2014, the Company resolved to acquire 100% of the outstanding shares of Protective Life Corporation("Protective"), a U.S. life insurance group at the board meeting held on the same day (the "Acquisition") and entered into a definitive agreement with Protective on the same day that a wholly-owned subsidiary of the Company established in the U.S. solely for the purpose of the acquisition process will be merged into Protective. In accordance with that agreement, the Company expects to acquire 100% of the outstanding shares of Protective in exchange for a cash consideration of approximately USD 5,708 million (approximately JPN 582.2 billion at the exchange rate of 102per U.S. dollar) in aggregate.

Subject to approval by the shareholders of Protective at a share holders meeting expected to be held in August or September 2014, approvals from relevant regulatory authorities and completion of necessary procedures, the Acquisition is expected to close between December 2014 and January 2015.

Proceeds raised through the issuance of new shares this time are planned to be used in full as funds for the acquisition of Protective. In addition to the proceeds raised this time, Company plan to deploy the budget set aside in our mid-term management plan (JPN 300 billion: approximately ?240 billion remaining as of March 31, 2014). Also, in the future Company will continue to consider initiatives such as strengthened capital management in overseas life insurance operations, additional reduction of market risk and other non-dilutive measures such as subordinated debt. Therefore, the Company forecasts that it can achieve its original goal for capital adequacy under "Action D", which is to attain economic based capital on a par with leading global insurers (to satisfy a 99.95% confidence level on an economic value basis)even after the Acquisition.

With the Acquisition through this equity offering, the Group will firmly establish itself in the U.S. insurance market adding to Japan and the Asia Pacific region. The Group also will expand the overseas earnings and accelerate geographic diversification, with further strengthening of its financial standing. The Group anticipates the Acquisition to be a transformative event for the Group's aspiration to become a "global insurance group representing Asia", enabling us to accelerate growth and expand our business further.