Mitsui Sumitomo Insurance, Aioi Nissay Dowa to Merge

Tokyo, March 28 (Jiji Press)--Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co. plan to merge in April 2027, their parent, MS&AD Insurance Group Holdings Inc., said Friday.

The merger will create the biggest nonlife insurer in Japan, overtaking current industry leader Tokio Marine & Nichido Fire Insurance Co.

The move is aimed at making operations more efficient and boosting profitability as Japanese nonlife insurers face the challenges of a shrinking domestic market due to societal aging and increasing benefit payments because of a series of large-scale natural disasters.

The merger between Mitsui Sumitomo Insurance and Aioi Nissay Dowa will consolidate the Japanese nonlife insurance industry into three major firms, including Tokio Marine and Sompo Japan Insurance Inc., compared with over 10 in the late 1990s.

Mitsui Sumitomo Insurance and Aioi Nissay Dowa had 2,992.2 billion yen in premium revenue together in the year ended in March last year, exceeding Tokio Marine, at 2,417.9 billion yen and Sompo Japan, at 2,177.9 billion yen.

[Copyright The Jiji Press, Ltd.]