Mitsui Marine, Sumitomo To Merge

Friday, February 25, 2000
Sumitomo Marine & Fire Insurance and Mitsui Marine & Fire Insurance have agreed to merge by April 1, 2002, in a move that would create Japan's largest non-life insurer. With combined assets of $51.7 billion, the merged company would outstrip current industry leader Tokio Marine & Fire Insurance, whose assets stand at $48.5 billion. Mitsui Marine is Japan's third largest non-life insurer, and Sumitomo Marine the fourth biggest. Analysts say the merger is set to accelerate consolidation in the sector, where competition is intensifying due mainly to the deregulation of insurance premiums in July 1998. Sumitomo Marine and Mitsui Marine said they will unveil a detailed merger plan in March. Both companies had said two weeks ago that they were in talks on forming an alliance. Mitsui Marine said then it had decided to pull out of a planned three-way merger, unveiled last October, with Koa Fire & Marine Insurance and Nippon Fire & Marine Insurance. Mitsui instead announced an agreement with Sumitomo Marine to seek an alliance. Analysts say attention is now focused on a possible reaction from the industry's top two players - Tokio Marine & Fire Insurance and Yasuda Fire & Marine Insurance. Koa Fire, ranked eighth in Japan, and Nippon Fire, ranked fifth, said they will continue merger talks and seek another partner. On Tuesday, medium-sized non-life insurer Dowa Fire & Marine Insurance, in which Japan's top life insurer Nippon Life Insurance holds a stake of about 20 percent, said it will merge with Nissay General Insurance, Nippon Life's wholly-owned unit, on April 1 next year. Then on Wednesday, a leading Japanese financial daily said Dai-Tokyo Fire & Marine Insurance, Japan's seventh largest non-life insurer, and Chiyoda Fire & Marine Insurance, ranked ninth, are in talks to merge. Both companies denied the report but said they were considering alliances with other companies to bolster their competitiveness. Analysts say news of an alliance between Mitsui Marine and Sumitomo Marine has sent a ripple through the industry not only because it will create Japan's largest non-life insurer but also because Sumitomo Marine will become stronger. Sumitomo Marine is considered among the most efficient and profitable companies in the sector. "Any merger with Sumitomo will be extremely positive," a senior analyst said on Friday before the announcement, adding that it will surely prompt Tokio Marine and Yasuda Fire to react.
Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

HMAS Success Deploys to Middle East

After months of preparation, HMAS Success departed Garden Island in Sydney today for a six-month deployment to the Middle East Region to provide logistic support

Rosneft Ships First Oil From Chayvo Field

Rosneft commenced shipment of crude oil extracted at the Northern Tip of Chayvo license off the coast of Sakhalin, with the first tanker carrying Sokol-grade crude leaving port on November 21.

Venezuela Ships First Crude Mixed with Algerian Oil to China

Venezuela is sending its first shipment of crude mixed with Algerian light oil to China, according to state oil company PDVSA and traders.   Venezuela recently

Finance

ST Engineering Rejigs Top Deck

Singapore Technologies Engineering Ltd (ST Engineering) today announced the appointment of senior management personnel to new key management positions in the

MHI Receives "Best IR Award"

Mitsubishi Heavy Industries, Ltd. (MHI) has received one of this year's "Best IR Awards" presented annually by the Japan Investor Relations Association (JIRA).

Houston Port Commission Approves budget

The Fiscal Year 2015 Operating and Capital Budget was approved Thursday during a special meeting of the Port Commission of the Port of Houston Authority.   Projections

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1964 sec (5 req/sec)