ASAHI MUTUAL CONFIRMS SOLVENCY RATIO SLUMP

Japanese assurer Asahi Mutual Life has reported a worsening of its solvency margin ratio in the six months to end-March, despite a rebound in Japanese share prices. Its solvency ratio slipped back over the period to 560.3% from 615% at end-September 2003. Despite the latest fall, the mutual’s solvency margin still stands well in excess of the 200% ratio set by the government as an acceptable minimum. In confirming the figures, Asahi made no comment on its long-mooted merger with local insurance group Millea Holdings. Until early 2003, Asahi Mutual had been due to integrate its operations into Millea in April this year, but currently the prospects for any sort of link-up between the two are in doubt. No new date has been given for a merger, while Asahi Mutual has committed only to aiming “to merge with Millea Holdings under a joint stock company, taking into consideration the economic environment at the time”.