Tokio Marine has set aside a $9bn warchest for overseas M&A and is eyeing deals in Asia as European and US plays are becoming more expensive, according to a report.

Tokio Marine chief executive Tsuyoshi Nagano told Reuters that the Japanese insurance giant was now looking to double Asia’s contribution to its overseas profits as it looks to build “a stable business by diversifying geographically and operationally."

Just last week, Tokio Marine struck a deal to acquire IAG’s Thai and Indonesian businesses for $390mn, with Nagano stating that the carrier was on the hunt for more M&A opportunities in Asia.

“As overseas business profits are nearing 200bn yen, we would like to raise the proportion of Asia (outside Japan) to 20 percent or more from less than 10 percent now,” Nagano said.

“We are always considering strategic options in countries like India, Indonesia, Thailand, Malaysia and the Philippines,” he added.

Although Nagono did not name any targets in particular, he said: “There are companies we have in mind, but it’s not easy, it will take time.”

Southeast Asian countries are becoming increasingly attractive to overseas carriers, where strong economic growth, growing middle-class and low insurance penetration in the region are providing solid growth opportunities.

Whilst Nagano said that the company will also continue to look for deals in the United States and Europe, he cautioned that acquisitions were growing too dear.

“We have to be careful not to overpay,” he told the publication.

Tokio Marine has made a number of notable acquisitions in the US and Europe over the past decade, including its $7.5bn acquisition of US speciality insurer HCC in 2015, its $2.7bn purchase of Delphi Financial Group in 2012 and its £442mn deal to buy Lloyd’s carrier Kiln in 2008.

Overseas earnings will likely contribute 45 percent of the company’s total profits in the year to March 2019, the company said.