4 Japan Nonlife Insurers to Sell Clients’ Shares

Yomiuri Shimbun file photo
The Financial Services Agency

TOKYO (Jiji Press) — Four major Japanese nonlife insurance companies plan to sell all of their cross-shareholdings with client firms, people familiar with the matter said.

Financial regulators have criticized the insurers’ practice of holding shares in client firms to maintain good relations with them as a hotbed for them to collude to fix insurance premiums for contracts.

In December, the Financial Services Agency urged the insurers — Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc., Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co. — to step up the sale of such cross-held shares.

The insurers plan to include their decision to eliminate cross-shareholdings in their reports to be submitted to the agency on Thursday, the people said.