'We won't leave India for short-term worries'

Yoshinobu Tsutsui, president of Nippon Life Insurance Company

Yoshinobu Tsutsui, president of Nippon Life Insurance Company Ltd since April 2011, is keen on long-term investment in India. The company bought a 26 per cent stake in Reliance Life Insurance in March 2011, and a similar one in Reliance Mutual Fund in January 2012. Tsutsui spoke with Business Today's Suman Layak in Tokyo about India's growth, Anil Ambani and insurance in Japan.

Young people buy less insurance in Japan than the previous generation. How do you view the change?
This is a serious problem. Last year, after the earthquake and tsunami, life insurance companies settled many claims. It was possible because the companies had proposed protection when these people were young. The young today will not be prepared for such calamities. There are several factors behind this. One, many people marry late. Two, the number of part-time employees is increasing. It means lower incomes and inability to buy protection products. Also, many people have desk-bound work, so access to them is difficult. However, it remains an important mission for us.

You have invested in two companies promoted by Anil Ambani . You said in your last annual report that you value personal interaction as a way of assessing possible investments. What is your view on Ambani?
I have met him three times. Every time, I'm more convinced that we share a special bond. He has a sharp mind, values relationships and wants to build a long-term business. His company's values match our policies.

Reliance Life is one of the largest private life insurance players. Reliance has a strong brand. Distribution, vision and contacts are no problem. But the most important thing is a strong bond and human relationships. Add to that talented people. We firmly believe here are the people with whom we can do business in India.

Are you interested in ADAG's general insurance business and non-banking finance company?
Not at the moment, because general insurance is different from life insurance. The rules of underwriting are different. We don't have the knowhow. The same is true about the NBFC.

Since you became President of Nippon Life, you have spent a lot on improving IT in the company. Will you share such developments with the ADAG companies?
Yes. Whether to invest in IT or not is Reliance Capital's decision. But it is highly possible. Soon advisers will be carrying mobile PCs here in Japan. We can share such knowhow. There may also be capabilities where we can learn from Reliance Capital.

You have said you will look for more strategic investments globally. What are your plans?
We are constantly looking for opportunities. We go case by case. If you are talking about a 100 per cent stake in overseas companies, the approach may be a long-term goal. Nippon Life does not have a long history of investing abroad. For now, we take minority stakes and collaborate. We can do it with more than one entity in one market.

Do you worry about the slowdown and regulatory flip-flops in India?
We have no worries about India. We do not look at short-term prospects. We won't leave India for short-term worries. It's a growing market in the long term. The same can be said of Reliance Capital.

This is the 60th year of diplomatic relations between India and Japan. In newspapers here, we see articles daily on the Indian economy. We need to know India's culture more closely.

Will you let Reliance Mutual Fund manage some of the money you raise in Japan?
Our deal with the AMC is awaiting regulatory clearance. We are considering various collaborations. Japan has low interest rates and stock prices, and it is difficult to make profits. It is important to buy into growth in India and other countries.