MITSUI SUMITOMO EXPECTED TO ANNOUNCE MERGER DEAL THIS WEEK

Japan-based Mitsui Sumitomo Insurance Holdings is expected to announce this week its planned merger with locally based Aioi Insurance and Nissay Dowa General Insurance, reports this morning’s Nikkei . A memorandum of understanding is likely to be signed this Friday, the report claimed. The combination of the three, which are ranked second, fourth and sixth in Japan by premiums written, would create the largest insurer in Japan, overtaking Tokio Marine Holdings, formerly Millea. Combined non-life premiums at Mitsui Sumitomo, Aioi and Nissay Dowa last year were ¥2.7trn ($29.8bn). Nikkei reported that the merged operation planned to use the cash generated through cost savings to invest in operations abroad, mainly in Asia.