SOMPO JAPAN LOOKING TO SELL ITS CREDIT DEFAULT HOLDINGS

JAPANESE insurer Sompo is looking at the possibility of selling to other insurers its holdings of credit default policy contracts, reports yesterday’s Nikkei. Sompo Japan has said that it expects to book a loss of Yen70bn ($746.8m) in the second half of its financial year to March 2009. The write-off will push Sompo into the read for financial year 2008-09. The balance of the contracts stood at Yen270bn at the end of September, and Sompo anticipates accumulated losses of Yen100bn by March 2009. Nikkei reported that Sompo was looking to commute the contracts, possibly with overseas reinsurers.