Japan's three major non-life insurers eye merger

TOKYO (AFP) — Mitsui Sumitomo Insurance Group Holdings and its two rivals are considering an integration of their operation to become Japan's biggest non-life insurer, a news report said Sunday.

Mitsui Sumitomo, the nation's second largest non-life insurer, is negotiating with Aioi Insurance and Nissay Dowa General Insurance on the integration, Japan's public broadcaster NHK said, quoting unnamed sources.

Their negotiations are at "the final stage," NHK said, adding that the three firms hope to reach a basic accord as early as January so they can integrate their operation under a single holding company later next year, it said.

The three are also considering a complete merger in the future as part of a joint effort to strengthen their operation to cope with the global financial crisis, NHK said.

If a merger goes ahead, the new group would be the nation's largest non-life insurer with a total of 2.7 trillion yen (30 billion dollars) in insurance revenue, topping that of the current number one, Tokio Marine Holdings, said the broadcaster.