Japanese nonlife insurers suffer losses on falling car ownership

TOKYO, Aug 12, 2008 (Asia In Focus via COMTEX) -- TKOMF | Quote | Chart | News | PowerRating -- Weak domestic car sales have been weighing on the bottom line at Japan's nonlife insurers, with April-June auto insurance premium revenues decreasing at six of the seven major players. Auto insurance premium revenues at the seven major nonlife insurers dipped 1.3 per cent to 817.4 billion yen (US$7.44 billion) on the year for the quarter, according to earnings results released Monday.

* Car insurance premium revenue sank 1.8 per cent to 220.2 billion yen at TOKIO MARINE & NICHIDO FIRE INSURANCE CO., a subsidiary of TOKIO MARINE HOLDINGS INC. (TSE:8766) and the figure at MITSUI SUMITOMO INSURANCE CO., a unit of MITSUI SUMITOMO INSURANCE GROUP HOLDINGS INC. (TSE:8725), fell 1.9 per cent to 140.7 billion yen.

* SOMPO JAPAN INSURANCE INC. (TSE:8755), which raised rates on vehicle policies in April, saw car insurance premium revenue inch up 0.1 per cent to 170.3 billion yen, making it the only insurer to report an increase.

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