Japan's Mitsui Sumitomo Sees Fall in Net on Investments, Declining Premiums

Mon. February 16, 2009; Posted: 08:21 AM

TOKYO, Feb 16, 2009 (A. M. Best via COMTEX) -- MSIGY | Quote | Chart | News | PowerRating -- Mitsui Sumitomo Insurance Group Holdings Inc. [84422] posted a 75% drop in net income to 12 billion yen (US$130.8 million) in the first three quarters of 2008 fiscal year.

The insurance group earned 1.1 trillion yen in net written premiums, down 5.2% from a year ago. Investment losses on securities totaled 109.3 billion yen in the first nine months of 2008, ending Dec. 31.

In the wake of plunging global capital markets and a weakening economic outlook, Mitsui Sumitomo made its financial forecast for 2008 fiscal year with a net income of 20 billion yen. Net income per share is forecasted for 47.48 yen.

Mitsui Sumitomo said its automobile liability line saw the biggest drop of net premiums, down 19.8% to 116 billion yen in the first three quarters of 2008. Marine and fire insurance lines declined 6.9% and 3% to 75 billion yen and 164 billion yen in net premiums, respectively.

The insurance group's subsidiaries include Mitsui Sumitomo Insurance Co., Mitsui Direct General Insurance Co. [83209], Mitsui Sumitomo Kirameki Life Insurance Co. [86887] and Mitsui Sumitomo Metlife Insurance Co. [88533].

Last month, Mitsui Sumitomo reached a merger agreement with Aioi Insurance Co. [85028] and Nissay Dowa General Insurance Co. [85056]. The three-way merger is set to be completed by April 2010 to form the biggest nonlife insurance group in Japan, which will be incorporated under Mitsui Sumitomo group (BestWire, Jan. 23, 2009).

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

(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.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

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.