Major Japanese nonlife insurer MS&AD Insurance Group Holdings plans to consolidate its domestic bases from around 360 to 240 ahead of the April 2027 merger of its key subsidiaries. President Shinichiro Funabiki emphasized that integration is essential for cost reductions.
MS&AD Insurance Group Holdings, a major Japanese nonlife insurer, announced plans to consolidate its domestic bases in preparation for the April 2027 merger of its key subsidiaries, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance. In a recent interview, President Shinichiro Funabiki stated, "Without a certain level of integration, we cannot achieve cost reductions," indicating a reduction from around 360 to 240 bases by the merger date.
Following the merger, the holding company will rename itself Mitsui Sumitomo Insurance Group. The firm targets ¥700 billion in profit by fiscal 2030 to bolster shareholder returns, allowing sustained dividend growth even after divesting cross-shareholdings. Funabiki added, "We will be able to provide new coverage and services" as the business scales up, expressing commitment to this goal.
Beyond base consolidation, the company will pursue rigorous cost-cutting, including an early retirement program. The nonlife insurance sector has faced scandals like fraudulent claims and corporate policy price-fixing, prompting the Financial Services Agency to revise insurance laws and guidelines. Funabiki stressed, "We need to rebuild a customer-oriented business model," underscoring efforts to restore public trust.
These measures represent a key step toward industry efficiency and credibility restoration.
