MITSUI SUMITOMO INSURANCE, AIOI AND NISSAY DOWA IN MERGER TALKS

Japanese non-life insurers Mitsui Sumitomo Insurance Holdings, Aioi and Nissay Dowa — the second-largest, fourth-largest and sixth-largest insurers in Japan measured by premiums written — are in talks to merge before the end of this year, reports Nikkei . Aioi, which is one-third owned by locally based carmaker Toyota, and Nissay Dowa are thought likely to merge ahead of their integration into Mitsui Sumitomo Insurance, with all operations coming under the umbrella of a single holding company during 2010. The holding company will initially take control of Mitsui Sumitomo Insurance Co and the entity created through the merger of Aioi and Nissay Dowa. Combined, the three companies would have had written premiums of ¥2.71trn ($29.1bn) in financial year 2007-08. Nikkei reported that the three companies were believed to be working out the details of the arrangement, with the intention of signing a deal before the end of January.