A merger of two of Japan’s biggest non-life insurers is set to create the nation’s largest non-life insurer.
Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co., currently the third- and fourth-largest nonlife insurance companies in Japan will merge in April 2027, according to sources.
Both companies are part of MS & AD Insurance Group Holdings Inc.
All three companies held board of directors meetings on March 28 where the merger plan was approved, the sources said.
Among the details that still need to be worked out are the name of the merged company and who will lead it.
The new company is projected to have combined sales exceeding those of industry leader Tokio Marine & Nichido Fire Insurance Co.
Until now, MS & AD Insurance Group Holdings was the only one of the three nonlife insurance holding companies with two nonlife insurance companies under its wing.
Initial plans called for playing to the two companies’ respective strengths, but Japan’s declining population and a growing reluctance among young people to purchase cars signaled a shrinking market for nonlife insurance.
A merger was seen as the quickest way to create a more efficient way of doing business through downsizing.
AloJapan.com