Horror year for Japanese insurers
Japan’s top four general insurers have reported a painful 12 months to March 31, each ravaged by investment writedowns and difficult market conditions.
Market leader Tokio Marine saw a 79% drop in net profit from a year earlier to ¥23.14 billion ($316 million). Net written premium (NWP) dipped 4.9% to ¥2.13 trillion ($29.12 billion).
Net profit for number two Mitsui Sumitomo slumped 80% to ¥8.19 billion ($111 million) on NWP of ¥1.45 trillion ($19.8 billion), down 6.2%.
Number three Sompo Japan reported a thumping net loss of ¥66.71 billion ($912 million) after a net profit of ¥59.64 billion ($815 million) a year earlier. NWP was down 6.4% at ¥1.77 trillion ($24.2 billion).
Exposure to the US housing sector provided the double whammy for Sompo.
The fourth-largest insurer, Aioi, notched up a ¥10.94 billion ($149 million) loss on top of a ¥3.17 billion ($43.34 million) loss a year earlier. NWP slid 5% to ¥985.72 billion ($13.5 billion).
Continuing losses in the stagnant Japanese general insurance industry have led to a string of mergers. Mitsui Sumitomo and Aioi will merge next April with Nissay Dowa General Insurance Co, while Sompo Japan and Nipponkoa Insurance announced a merger in March.
Market leader Tokio Marine saw a 79% drop in net profit from a year earlier to ¥23.14 billion ($316 million). Net written premium (NWP) dipped 4.9% to ¥2.13 trillion ($29.12 billion).
Net profit for number two Mitsui Sumitomo slumped 80% to ¥8.19 billion ($111 million) on NWP of ¥1.45 trillion ($19.8 billion), down 6.2%.
Number three Sompo Japan reported a thumping net loss of ¥66.71 billion ($912 million) after a net profit of ¥59.64 billion ($815 million) a year earlier. NWP was down 6.4% at ¥1.77 trillion ($24.2 billion).
Exposure to the US housing sector provided the double whammy for Sompo.
The fourth-largest insurer, Aioi, notched up a ¥10.94 billion ($149 million) loss on top of a ¥3.17 billion ($43.34 million) loss a year earlier. NWP slid 5% to ¥985.72 billion ($13.5 billion).
Continuing losses in the stagnant Japanese general insurance industry have led to a string of mergers. Mitsui Sumitomo and Aioi will merge next April with Nissay Dowa General Insurance Co, while Sompo Japan and Nipponkoa Insurance announced a merger in March.