Within 10 years after issuance and under certain conditions the notes can automatically convert into Allianz common stock. In addition, Nippon Life has the option to exchange the notes for common stock issued by Allianz within 10 years after issuance.
"The objective of this investment is to establish a long-term partnership that is mutually beneficial for both companies," said Yoshinobu Tsutsui, President of Nippon Life Insurance Company. "We are very pleased to have the opportunity to strengthen our relationship with Allianz, which shares similar values and beliefs with Nippon Life regarding the insurance business."
"I am delighted that we were able to close this transaction with such an important and trusted partner," said Michael Diekmann, chairman of the board of management of Allianz SE. "With this transaction, we are among the first companies to participate in the growing market for contingent convertible notes."
Nippon Life provides a broad array of products including whole life, medical, nursing coverage and annuities in Japan. As the world’s largest mutual life insurance company with a formidable capital base, Nippon Life focuses on constantly serving the best interests of its customers by providing "consistent protection" and "superior services" over the long term. At the end of FY2010, Nippon Life had total assets of 50 trillion yen (424 billion euros) and total revenues of 6.6 trillion yen (57 billion euros).
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