Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 17th of January 2018
December 30, 2008

Japanese insurers consult on merger

by Gill Montia

Story link: Japanese insurers consult on merger

Three of Japan’s largest insurers are understood to be in merger talks.

According to reports, Mitsui Sumitomo Insurance Group Holdings Inc, Aioi Insurance Co and Nissay Dowa General Insurance Co are working towards an agreement that could be in its final form by March of next year, although an actual merger would not be complete until the autumn.

Such a move would give the combined group a 33% share of the Japanese general insurance market, outstripping Tokio Marine Holdings Inc, currently the country’s leading non-life insurer with a 27% market share.

The insurance sector worldwide is expected to experience a busy period of consolidation in 2009 as the global economic downturn hits sales and companies struggle with the financial turmoil surrounding the credit crisis and a slide in the value of their securities holdings.

Earlier this month, HSBC alerted UK insurers to the likelihood that severe cost pressures and fierce competition could result in mergers and consolidations across the industry, in the months ahead.

The bank’s analysts are also predicting that there is likely to be increasing differentiation between underwriters that focus strongly on cost and providers that focus on value and service.

 

News posted:



Related stories to Japanese insurers consult on merger: