Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance to merge

MS&AD Insurance Group Holdings, Inc. announced its Board of Directors has decided to move forward with specific discussions and preparations for the merger of its two core domestic non-life insurance subsidiaries, Mitsui Sumitomo Insurance Co., Ltd. and Aioi Nissay Dowa Insurance Co., Ltd.

In a statement MS&AD outlined its vision of “Creating a world-leading insurance and financial group.” The planned merger, with target date set for April 2027, is a key strategic step towards realising this vision and bolstering the group’s ability to support a resilient and sustainable economy and society.

The integration of Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance aims to establish a more robust domestic non-life insurance business structure.

MS&AD also stated its intention to enhance its compliance system in response to various issues, including price-fixing and information leakage incidents.

Furthermore, subject to shareholder approval at the upcoming Annual General Meeting, the group intends to transition to a company with an audit and supervisory committee.

A key element of this change will be the appointment of a majority of outside Directors, a move designed to significantly strengthen the supervisory and check-and-balance functions of the Board of Directors.

This enhanced governance structure will enable more effective monitoring of the internal control systems across all group companies, MS&AD explained.

The merger will establish a non-life insurance company that aims to hold the top market share in the domestic nonlife insurance sector.

Moreover, MS&AD emphasised its commitment to enhancing the value provided to customers by strategically integrating the distinct strengths of both Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance within the domestic non-life sector.

“Furthermore, we aim to establish a system to offer the best products and services to customers by investing accumulated capital into growth areas such as international business, domestic life insurance business, and digital/risk-related services,” MS&AD stated.

Adding: “To achieve this target, we vigorously pursue efforts to maintain, consolidate, and further expand the strengths of Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance.

“We will also focus on improving management efficiency, including IT system integration, and optimizing management resources such as human resources and facility network, with the aim of becoming a world-leading insurance and financial group.”

The announcement of details such as the merger method, the name of the post-merger company, and representatives will be announced once decided, the statement concluded.

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