Another round of consolidation is shaping up in the Japanese insurance industry with the announcement that Yasuda Fire & Marine Ins. Co., Nissan Fire & Marine Ins. Co. and Taisei Fire & Marine Ins. Co. are holding talks aimed at a consolidation of the three companies creating Japan’s second largest p/c insurer.
The move was not unexpected, as all three companies have ties with the Mizuho Financial Group, formed following the merger of Fuji Bank, Dai-Ichi Kangyo and Industrial Bank of Japan. Analysts also see the merger as a response to September’s announcement that Tokio Marine & Fire Ins. Co., Japan’s largest p/c insurer, plans to combine with two smaller companies, Nichido Fire & Marine Ins. Co. and Asahi Mutual Life Ins. Co.
The three insurers hope to reach an agreement by the end of the year, and have already begun to cooperate on marketing products, developing new products, asset management and risk management. If plans continue on schedule they would form an integrated company by April of 2002.
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