Mitsui Sumitomo Expects Six-Month Loss on Investment Concerns

Wed. November 12, 2008; Posted: 05:50 AM

TOKYO, Nov 12, 2008 (A. M. Best via COMTEX) -- MSIGY | Quote | Chart | News | PowerRating -- Mitsui Sumitomo Insurance Group Holdings Inc. is forecasting a loss for the first half of this year on investment losses attributed to the global financial crisis.

The Japanese nonlife insurer revised its previous forecast for ordinary profit of 37 billion yen (30.3 million euros) to loss of 5 billion yen for the first six months of the 2008 fiscal year. The insurer's fiscal year ends March 31.

Mitsui Sumitomo lowered the group's consolidated forecast for net income from 24 billion yen to 12.5 billion yen. The forecast for ordinary income also dropped by 10 billion yen.

The publicly-listed insurance group booked 45 billion yen of devaluation losses in securities investments related to plunging stock markets. In Europe, Mitsui Sumitomo said its subsidiary will report loss of 40 billion yen due to higher claim costs from credit insurance.

The group said it will record "extraordinary income" by taking 27 billion yen from its price fluctuation reserve for losses in securities investments.

The group's insurance subsidiary, Mitsui Sumitomo Insurance Co. Ltd., is expected to see an improvement in underwriting profit of 33 billion yen compared to its previous forecast because incurred losses were lower than expected for the six months ended Sept. 30.

The insurer said its forecast for net income will improve from last year by 28 billion yen, for a current forecast of 51 billion yen. Ordinary profit will drop from last year's 41 billion yen to 35 billion yen in the first half of 2008 fiscal year.

Mitsui Sumitomo Insurance Co Ltd currently has a Best's Financial Strength Rating of A+.

(By Iris Lai, Hong Kong bureau manager: Iris.Lai@ambest.com)

For full details for MSIGY click here.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.