Tokio Marine Holdings has reported a rise in annual profit, driven by its overseas business and domestic life insurance.

The group also says it will open talks with Japanese agricultural co-operatives insurer Zenkyoren on an alliance.

Earnings were ¥129.58 billion ($1.32 billion) in the year to March 31, up from ¥6 billion ($61 million) the previous year.

Net written premium increased 10% to ¥2.56 trillion ($26.15 billion) and life insurance premium gained 16% to ¥399.85 billion ($4.11 billion).

The group’s businesses include Tokio Marine & Nichido Fire Insurance, Nisshin Fire & Marine, E.design Insurance and Tokio Marine & Nichido Life Insurance.

Tokio Marine & Nichido Fire will begin talks with Zenkyoren because intense competition and a declining population have created a difficult environment in the Japanese co-operative and non-life insurance market, the company says.

Last year the parent group bought Delphi, a US life and property and casualty insurance provider.

“We are working for a successful management integration with Delphi Financial Group, while actively pursuing business expansion in Asia, Brazil and other emerging economies to ensure future growth,” Tokio Marine Holdings said.

Non-life net premiums written are forecast to rise 5.9% this year, while life insurance premiums may increase 15%, according to the company.