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 September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Teekay LNG Partners Declare Distribution

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. has declared a cash distribution of $0.70 per unit for the quarter ended September 30, 2015. The

TMS Cardiff Gas Orders First LPG Carriers

TMS Cardiff Gas Ltd. has signed a contract with Hyundai Heavy Industries of Korea for the construction of two 78,700 cbm LPG carriers with the option to build another two.

Odfjell's Tanker Overhaul Seeks to Slash Emissions by 20%

Norwegian tanker shipper Odfjell announced it is upgrading the propulsion systems aboard 19 of its chemical tanker vessels in a move that aims to reduce its fuel


Rolls-Royce to Cut More Staff of Marine Unit

Britain's Rolls-Royce said it would cut an additional 400 staff from its marine business by the end of next year, its latest move to make the unit more efficient

Wärtsilä Debuts Package for hydropower & industrial plant

Wärtsilä Corporation, a global leader in complete lifecycle power solutions for the marine and energy markets, expands into a new market segment, offering a comprehensive package of seals,

Smith Taken on Rolls-Royce Holdings Board

Rolls-Royce Holdings plc today announces the appointment of Sir Kevin Smith CBE as a Non-Executive Director.  Sir Kevin will join the Board with effect from

Maritime Contracts Maritime Security Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1381 sec (7 req/sec)