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 March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

North Sea: Potential VLCC Moves to South Korea

North Sea Forties crude differentials were unchanged on Wednesday in very quiet pre-Easter trade, with dealers still watching two potential VLCC shipments to Asia

All Items Approved at Stolt-Nielsen Meeting

Stolt-Nielsen Limited announced that all agenda items were approved and all nominated directors were elected at its Annual General Meeting of shareholders held yesterday in Bermuda.

Petrobras, Mitsui Study South Brazil LNG Import Terminal

Brazil's state-run oil company Petroleo Brasileiro SA and Japanese trading house Mitsui Corp will study building a liquefied natural gas (LNG) terminal in the country's southernmost state,

Finance

Crashes in Crucial US Crude Waterway Hit 10-year Low

Serious crashes in the bustling Bay of Galveston have fallen to the lowest level in a decade even as more oil moves on U.S. waterways, official data show, suggesting

All Items Approved at Stolt-Nielsen Meeting

Stolt-Nielsen Limited announced that all agenda items were approved and all nominated directors were elected at its Annual General Meeting of shareholders held yesterday in Bermuda.

Three European firms win Angola deepwater deals

Three European companies have won contracts for almost half the value of Angola's $16 billion ultra-deepwater Kaombo oil project, confirming a trend toward bigger

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction 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: 0.1165 sec (9 req/sec)