To use this site, please disable the ad blocking feature and reload the page.
This website uses cookies to collect information about your visit for purposes such as showing you personalized ads and content, and analyzing our website traffic. By clicking “Accept all,” you will allow the use of these cookies.
Users accessing this site from EEA countries and UK are unable to view this site without your consent. We apologize for any inconvenience caused.
The Yomiuri Shimbun Buildings of Mitsui Sumitomo Insurance Co., left, and Aioi Nissay Dowa Insurance Co., which are expected to soon start merger discussions
The Yomiuri Shimbun
14:30 JST, March 28, 2025
Mitsui Sumitomo Insurance Co., the third largest non-life insurance company in Japan, and Aioi Nissay Dowa Insurance Co., the fourth largest, are set to begin merger discussions, The Yomiuri Shimbun has learned.
The two companies aim to complete the merger by April 2027, as they look to reduce administrative costs and improve product attractiveness to drive growth. The merged company will become the largest non-life insurance company in Japan, and the industry reorganization that has been underway for a quarter of a century will enter its final stage.
MS&AD Insurance Group Holdings, Inc., which controls both companies, decided on the merger at a board meeting held on Friday. Following this, both companies are to make a formal decision on proceeding with merger discussions. A special secretariat will be established to discuss such things as the merger ratio, the name of the new company and the location of the head office.
If the two companies merge, their combined domestic net premiums written, which is equivalent to net sales, will total ¥2.99 trillion on a simple aggregate basis for the fiscal year that ended March 2024. Tokio Marine & Nichido Fire Insurance Co., the current largest non-life insurance firm, has domestic net premiums written worth ¥2.41 trillion. The two companies plan to quickly reduce overlapping business expenses and shift to a structure that can more efficiently generate profit. They also plan to bring together their respective expertise and develop unique products.
The business environment surrounding domestic non-life insurance is becoming increasingly severe. In addition to the market shrinking due to the declining birthrate and aging population, as well as the decreasing interest in cars among young people, insurance payments have been increasing due to factors such as the rising cost of car repairs and the frequent occurrence of natural disasters. The merger is also aimed at expanding the scale of the company and increasing its competitiveness.
Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance integrated their managements in 2010 and came under the umbrella of MS&AD Holdings. Mitsui Sumitomo Insurance has a large customer base, composed mainly of corporations in the Mitsui and Sumitomo groups. Aioi Nissay Dowa has close ties with Nippon Life Insurance Co. and Toyota Motor Corp., and its strength is in personal automobile insurance. The two companies have been expanding their businesses under a strategy of “reorganization by function,” in which they respond to customer needs by making the most of their respective areas of expertise.
The two companies have been integrating their systems, including insurance payments, since 2010. The integration is expected to be largely completed by the end of fiscal 2025, and the companies have decided that they are now able to begin discussions on a merger.
The domestic non-life insurance industry since 2000 has seen major restructuring due to increased competition caused by its liberalization. Currently, the four major companies, Tokio Marine & Nichido, Sompo Japan Insurance Inc., Mitsui Sumitomo and Aioi Nissay Dowa have a total market share of more than 80%.
