Japanese non-life insurers Sompo Japan Insurance and Nipponkoa Insurance are to merge into a single company in the first half of the 2014 financial year.
The boards of Sompo Japan, Nipponkoa and NSKJ Holdings have been reviewing the possibility of a merger for some time, and the deal is now set to go ahead pending regulatory approval.
The new company, Sompo Japan Nipponkoa Insurance, will be based in Tokyo and will have net written premiums of ¥1,877.2bn (£14bn), based on the sum of Sompo Japan and Nipponkoa for the year ended 31 March 2011. It expects to employ 21,196 workers.
Commenting on the merger, the firms said they were seeking to establish a new company which can compete effectively on the global stage, with the aim of improving the efficiency of the domestic P&C insurance business.
"The most important objective of Sompo Japan Nipponkoa's management strategy will be to become a P&C insurance company that earns the highest evaluation from customers, with the aim of achieving sustained growth," the statement said.
"Given the social mission of the P&C insurance business, Sompo Japan Nipponkoa will also continue to contribute to the creation of a sustainable society."
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