Tuesday, March 31, 2009

Sompo Japan Insurance and Nipponkoa Insurance to Form Joint Holding Company

Sompo Japan Insurance and Nipponkoa Insurance have agreed to establish a joint holding company, through joint stock transfer, for business integration.

The integration is expected to be completed in April 2010. Through the new group Sompo Japan and Nipponkoa Insurance will focus on their business in Japan, and aim to enhance profitability by jointly expanding the overseas insurance business with high growth potential through consideration of mergers and acquisitions, and review of the existing overseas sales network.

Sompo has said that both the companies will also seek to increase the insurance profits by centralizing the risk management process through a joint risk management system and by sharing the know-how of underwriting. They will also consider reduction of procurement cost by reforming the supply chain such as joint purchase of materials and goods, and the distribution system as well as by promoting shared services.

No comments: