Latest news with #MitsuiSumitomoInsurance
Yahoo
22-04-2025
- Business
- Yahoo
MS&AD reportedly plans $5bn investment to boost North American growth
MS&AD Insurance Group Holdings plans to invest up to Y700bn to grow its North American operations, aiming to double operating profits in the region, Bloomberg News reported, citing the company's CEO. The Tokyo-based insurer, which leads in market share among global companies in Asia, is the third-ranked Japanese insurer in North America. 'So the challenge is how to become the top player there,' CEO Shinichiro Funabiki told Bloomberg in an interview. 'We need to strengthen our organisation so that we can double our profits in the near future,' said Funabiki, noting that specific business areas and investment targets will be decided later. Funabiki said the company intends to maintain its current investment approach. MS&AD projects net profits from its North American operations, encompassing Canada and Mexico, to hit Y166bn in the fiscal year ending March 2025, a 3.5-fold rise from the prior year. Amid a declining domestic market due to Japan's shrinking population, Japanese insurers are pursuing overseas growth through acquisitions. In March, MS&AD's subsidiary, Mitsui Sumitomo Insurance Co., revealed plans to purchase a 15% stake in US-based W.R. Berkley Corp. Funabiki affirmed the company's commitment to a bold investment approach. After factoring in the W.R. Berkley deal, MS&AD estimates Y600bn–Y700bn remains for investments, partly funded by proceeds from divesting cross-held shares in companies with prior business connections. Additionally, MS&AD is looking to merge its non-life insurance units, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance, with April 2027 the target date for completion. Funabiki declined to discuss potential cost savings from the merger but suggested it could strengthen group governance. Japan's Financial Services Agency issued business improvement orders in March to four non-life insurers, including Mitsui Sumitomo Insurance, for mishandling customer data, and in December 2023 for colluding on pricing in corporate contracts. 'The most lacking aspect was the ability to anticipate risks,' Funabiki said, noting that 'having two insurance companies of the same size with a dispersed organisational structure is not an optimal state'. The merged entity may adopt a merit-based personnel system, moving away from seniority, a change Mitsui Sumitomo Insurance initiated this fiscal year. "MS&AD reportedly plans $5bn investment to boost North American growth " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Japan Times
22-04-2025
- Business
- Japan Times
Insurer MS&AD plans to invest $5 billion to double U.S. profits
MS&AD Group plans to invest as much as about ¥700 billion ($5 billion) to expand in the North American market, to meet its goal of doubling operating profits in the region, according to its chief executive officer. The Tokyo-based casualty insurer has the highest market share in Asia among global firms, but it's No. 3 among Japanese peers in North America, "so the challenge is how to become the top player there,' said Shinichiro Funabiki in an interview. "We need to strengthen our organization so that we can double our profits in the near future,' said Funabiki, adding that the business areas and new investment targets it will pursue will be determined in the future. Japanese insurers are increasing their presence overseas through takeovers as they face growing challenges in their home market due to a shrinking population. MS&AD announced in March that its subsidiary Mitsui Sumitomo Insurance will take a 15% stake in U.S. insurer W.R. Berkley. The company plans to continue its aggressive investment strategy moving forward, Funabiki said. MS&AD forecasts that net profit for its North American operations, including Canada and Mexico, will reach ¥166 billion in the fiscal year ended March 2025, a 3.5fold increase from the previous fiscal year. MS&AD has already announced its plan to redirect funds from selling cross-held shares of companies with which it had business ties toward growth investments. Considering the money it's spending for the stake in U.S.-based W.R. Berkley, the amount available for investment is estimated to be about ¥600 billion to ¥700 billion. The Japanese insurer also plans to merge its non-life insurance units, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance, with the target date set for April 2027. He declined to comment on cost reductions resulting from the consolidation. The merged company may adopt a personnel management approach based on ability rather than seniority, which Mitsui Sumitomo Insurance began implementing this fiscal year, Funabiki said. The CEO indicated that merging the companies may help improve the group's governance. Japan's Financial Services Agency issued business improvement orders to four non-life insurers including Mitsui Sumitomo Insurance for mishandling customer information in March, and for colluding to fix prices in contracts with corporate clients in December 2023. "The most lacking aspect was the ability to anticipate risks,' leading to irregularities, Funabiki said. "Having two insurance companies of the same size with a dispersed organizational structure is not an optimal state.'
Yahoo
11-04-2025
- Business
- Yahoo
Coalition launches new surplus lines cyber policy for businesses
Coalition, a provider of Active Insurance, has launched a new surplus lines cyber insurance product to protect businesses against digital risks in the US. The new policy, dubbed Coalition Active Cyber Policy, introduces data-driven coverage enhancements to protect businesses in the evolving digital risk environment. According to Coalition, the policy offers expanded protections tailored to modern digital threats and specific benefits for policyholders that actively engage in cyber risk management. The policy is structured to reduce retention costs to zero for each year for policyholders that demonstrate proactive risk management, the company added. It includes provisions for early reporting of funds transfer fraud (FTF), offering reduced retentions for clients that report FTF incidents within a 72-hour window. The policy also extends coverage to include AI-related security events such as deepfake-enabled FTF and security failures caused by AI. The policy also features Any One Claim Coverage, which allows the full policy limit to reset for each incident within the policy period. Coalition has consolidated 11 coverages that were previously offered as endorsements into the base policy's insuring agreements. The new policy is available to organisations with annual revenues up to $5bn, and offers limits of up to $15m. Coalition chief revenue officer Shawn Ram said: 'With the launch of the Active Cyber Policy, Coalition is setting the standard for market-leading coverage that includes expanded protection against emerging digital threats and specific advantages for security-conscious policyholders. 'Active Insurance is built on the predication that proactive security measures significantly reduce the frequency and severity of claims – in fact, our data proves it. And now, brokers can offer improved policy terms that enhance coverage to clients who actively participate in their cyber risk management.' Last month, Coalition secured a $30m (Y4.39bn) equity investment from Mitsui Sumitomo Insurance, a subsidiary of MS&AD Insurance Group. This investment strengthens their existing relationship, which includes a multi-year capacity agreement in Australia and a joint initiative to provide cybersecurity solutions to small and medium-sized enterprises in Japan. "Coalition launches new surplus lines cyber policy for businesses " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Japan Times
31-03-2025
- Business
- Japan Times
Mitsui Sumitomo Insurance to merge with Aioi Nissay Dowa
Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance plan to merge in April 2027, their parent, MS&AD Insurance Group Holdings, said Friday. The merger will create the biggest nonlife insurer in Japan, overtaking current industry leader Tokio Marine & Nichido Fire Insurance. The move is aimed at making operations more efficient and boosting profitability as Japanese nonlife insurers face the challenges of a shrinking domestic market due to societal aging and increasing benefit payments because of a series of large-scale natural disasters. The merger between Mitsui Sumitomo Insurance and Aioi Nissay Dowa will consolidate the Japanese nonlife insurance industry into three major firms, also including Tokio Marine and Sompo Japan Insurance, compared with over 10 in the late 1990s. Mitsui Sumitomo Insurance and Aioi Nissay Dowa had ¥2.99 trillion ($20 billion) in premium revenue together in the year ended in March last year, exceeding Tokio Marine at ¥2.42 trillion and Sompo Japan at ¥2.18 trillion. Mitsui Sumitomo Insurance, Aioi Insurance and Nissay Dowa General Insurance combined operations under the holding company, MS&AD, in April 2010. Aioi and Nissay Dowa merged that October to become Aioi Nissay Dowa. Mitsui Sumitomo Insurance's forte is with corporate clients while Aioi Nissay Dowa focuses more on individual clients and auto insurance.
Yahoo
29-03-2025
- Business
- Yahoo
WR Berkley Stock Surges to Record High as Japan's MSI Plans to Take 15% Stake
Shares of W.R. Berkley Corp. set a new record high Friday after the insurance firm said a Japanese company will build a 15% stake in its stock. Mitsui Sumitomo Insurance will acquire shares on the open market and plans to own 15% of the company by the end of March 2026. At various thresholds, MSI will vote the shares in favor of the Berkley family, and the family will support the nomination of an MSI-backed board of W.R. Berkley Corporation (WRB) rose more than 7% Friday, leading gainers on the S&P 500 after the line insurance firm said Japan's Mitsui Sumitomo Insurance (MSI) will take a 15% stake in the company. MSI will buy shares from the open market or other third parties with the goal of building a 15% stake by the end of March 2026, the companies said in a statement. Once MSI reaches a 4.9% stake, the Japanese firm has committed to vote the shares in favor of what the Berkley family recommends. The Berkley family, with its 16% stake, will remain a larger shareholder than MSI. After MSI surpasses a 12.5% stake, the Berkley family has said it will support the nomination and election of an MSI-backed board member. The family itself intends to continue having two board seats, according to a news release. The agreement "will not have any effect on the day-to-day operations of the Company, nor will these arrangements reduce the Berkley Family's commitment to the Company," the news release said Friday. W.R. Berkley shares were recently up just under 8% and set an intraday record of $76.38 earlier in the session. Read the original article on Investopedia Sign in to access your portfolio
