Japan's MS&AD close to buying 26 pct of India life JV: Source

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Japan's MS&AD is close to buying a 26 per cent stake in a joint venture between New York Life and Max India for about $540 million, a source said on Thursday, signaling continued appetite of Japanese insurers for overseas acquisitions despite large Thai flood losses.

MS&AD Insurance Group, Japan's largest property-casualty insurer by revenue, is among the industry's most aggressive in expanding in Asia through acquisitions, buying both life and non-life assets to secure growth beyond weak home market.

Rival Tokio Marine, taking advantage of its stronger financial fire power, has been bagging bigger and more expensive deals in Europe and the United States, including a $2.7 billion acquisition of U.S. insurer Delphi Financial Group.

Mitsui Sumitomo Insurance, core unit of MS&AD, is close to agreeing to buy New York Life's 26 per cent stake in Max New York Life, India's largest non-banking private insurance company, for about Rs 28 billion, a source familiar with the matter said.

The three are likely to finalise the negotiation as early as on Thursday, said the source, who was not authorised to discuss the matter publicly.

An MS&AD spokesman said nothing has been decided and declined to elaborate further.

For MS&AD, the deal follows the acquisition of a 50 percent stake in Indonesia's PT Asuransi Jiwa Sinarmas for about 67 billion yen a year ago.

Despite Japanese insurers' hunger for overseas acquisitions and several assets up for sale, industry executives say many prospective deals are unattractive and too expensive.

There are also concerns that huge losses from Thai flood damage coverage could have sapped their M&A war chest.

In February, MS&AD said it expects a net loss of 145 billion yen for the year ended in March, hurt by more than 200 billion yen payment for Thai flood losses.