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Mitsui Sumitomo Insurance Group President Toshiaki Egashira said the three companies, which also include Aioi Insurance Co. and Nissay Dowa General Insurance Co., will have overseas bases in a total of 38 countries by merging their operations.
"We will aim to earn 500 billion yen in net premium revenues from overseas operations," Egashira said.
In January, the three firms announced the plan for a three-way integration, which will create Japan's largest and the world's fifth-largest nonlife insurance group.
Under the agreement, Mitsui Sumitomo, the second-largest nonlife insurer in Japan, will create a new holding company that will bring under its wing the fourth-ranked Aioi and sixth-ranked Nissay Dowa, which will first merge into a single entity.
Egashira expressed hopes of close cooperation with Toyota Motor Corp., which is expected to become the top stakeholder in the new holding company. He said the integrated companies will actively seek to explore markets centering on Asia and target not just Japanese corporate clients but also tap markets for insurance policies for individuals.
Nissay Dowa President Ichiro Tateyama said he does not anticipate job cuts after the integration of the three businesses.
"We will not carry out restructuring," Tateyama said. "There may be an excess of personnel (after the merger), but we will assign them to be in charge of quality enhancement of operations, damage surveys and sales," he added.
Tateyama also said the company has not been able to sufficiently tap into the clients of Nippon Life Insurance Co. in selling nonlife products. Nippon Life is Nissay Dowa's top shareholder. Currently, Nissay Dowa has policy contracts with only about 8 percent of Nippon Life's individual clients.
While the merger will dilute capital ties with Japan's top life insurer, Tateyama said he hopes to maintain a close relationship by transferring the additional personnel to support sales at Nippon Life.
Meanwhile, on the organizational framework of the integrated companies, Aioi President Tadashi Kodama said he hopes to see operations divided to target specific markets such as individuals and corporate clients and each market handled by different subsidiaries.
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