INTERVIEW: Japan Insurer MS&AD to Consolidate Domestic Bases

Tokyo, Jan. 12 (Jiji Press)–Major Japanese nonlife insurer MS&AD Insurance Group Holdings Inc. plans to consolidate its domestic bases ahead of the planned merger in April 2027 of its key subsidiaries, its president, Shinichiro Funabiki, said in a recent interview. “Without a certain level of integration, we cannot achieve cost reductions,” Funabiki said, suggesting that the insurance group is set to consolidate its domestic bases from some 360 at present to 240 at the time of the merger. When the two subsidiaries–Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co.–are merged, the group is scheduled to change the name of the holding company to Mitsui Sumitomo Insurance Group Inc. The company aims to achieve 700 billion yen in profit as the basis for shareholder returns in fiscal 2030, a level at which it expects to maintain a trend of dividend increases even after completing the sale of its cross-shareholdings. “We will be able to provide new coverage and services” as the business scale increases, Funabiki said, expressing his willingness to achieve the target. In addition to the base integration, it plans to implement thorough cost-cutting measures, including the introduction of an early retirement program. In response to a series of scandals in the nonlife insurance industry, including fraudulent insurance claims and price-fixing of insurance policies for corporate clients, the Financial Services Agency has been revising the insurance business law and supervisory guidelines in recent years. “We need to rebuild a customer-oriented business model,” Funabiki said, stressing that his company will continue to focus on restoring public trust. END [Copyright The Jiji Press, Ltd.]