The largest US life insurer owned by policyholders, New York Life Insurance Co had entered into an agreement to acquire a Dexia SA unit worth EUR380 million or USD512 million. The move is seen as an expansion of its business managing money for its investors.

Dexia Asset Management currently oversees about USD100 billion in its portfolio. The transactopm would boost its assets under management at New York Life Investments to over USD480 million. This was confirmed by the New York based firm through a statement.

According to New York Life CEO Ted Mathas, through a statement, said, "The Deal demonstrates our commitment to the global asset-management business which provides important earnings diversifications."

Mathas is but one of the insurance executives seeking expansion into the asset management market to increase fee incomes of the companies. New York Life struck a deal in 2012 to take a stake in Cornerstone Capital Management Inc. 

Dexia is based in both Paris and Brussels and its business is being wound down, whose costs are paid for by French and Belgian taxpayers. The said acquisition would be subject to regulatory approval and would be expected to be completed by the end of the year.