T&D Insurance Group's sale of subsidiary T&D Financial Life has a narrow impact on its business and financial risk profiles, S&P Global Ratings said in a Friday release.
S&P views the subsidiary's share in the Japanese insurance group as not significant.
The group, which is the holding company of Daido Life Insurance and Taiyo Life Insurance, will divest 85.1% of its shares in T&D Financial Life Insurance, with completion expected in the second half of fiscal 2027.
Although the subsidiary's contribution to new business premiums is high at about 40%, its total earnings and embedded value shares are low at about 4% to 5%, the rating agency said.
The subsidiary focuses on low-profitability savings-type insurance products.
The sale is in line with the group's efforts to evolve its revenue structure and reallocate capital toward higher-growth areas, S&P said.