The Nikkei Asian Review said talks over the deal are due to begin next week and that at JPY500bn ($4.87bn, €3.6bn), it would be the largest-ever acquisition of a foreign company by a Japanese life insurer.
Dai-ichi said in a statement that it is “considering investments in US life companies” but that “nothing has been decided […] at this point of time”.
On reports of company making a JPY200bn public offering for the acquisition, the company said: “We are considering various financing methods including public offering, given the investments in U.S. life insurance companies under consideration."
The cmpany added: "nothing has been decided with respect to this topic at this point of time.”
Dai-ichi has recently been active on the acquisitions front, taking a 40% stake in Panin Life of Indonesia in 2013 and purchasing Australia’s Tower Australia Group in 2011.
Dai-ichi registered a 14% year-on-year growth in consolidated revenues to JPY6.04trn for the financial year that ended in March.
Headquartered in Birmingham Alabama, Protective Life Corporation is a financial services holding company, with more than 2,400 employees and offices throughout the US. It has annual revenues of approximately $4bn as of 31 December 2013, and assets worth $68.8bn.
The biggest acquisition by a Japanese insurer so far is Tokio Marine Holdings Inc's purchase of property and casualty insurer Philadelphia Consolidated Holding Corp for about $4.7bn in 2008.
