A merger between two major Japanese non-life insurance companies is set to create the country’s largest insurer in the sector. Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co., currently the third- and fourth-largest nonlife insurance companies in Japan, will merge in April 2027, according to sources familiar with the matter.
Both companies are part of MS & AD Insurance Group Holdings Inc. All three companies held board of directors meetings on March 28 where the merger plan was approved, the sources said. The details of the merger, including the name of the merged company and its leadership, are still being determined. The new company is projected to have combined sales that surpass industry leader Tokio Marine & Nichido Fire Insurance Co.
Until now, MS & AD Insurance Group Holdings was the only one of the three nonlife insurance holding companies with two nonlife insurance companies under its wing. Initially, plans involved leveraging the strengths of both companies. However, Japan’s declining population and a growing reluctance among young people to buy cars have signaled a shrinking market for nonlife insurance. A merger was seen as a way to improve efficiency through business restructuring. The merger is seen as a way to create a more efficient business model through downsizing and streamlining operations to meet changing market conditions.
