MS&AD Announces Merger of Mitsui Sumitomo and Aioi Nissay Dowa

MS&AD Insurance Group Holdings, Inc. has announced the merger of two of its non-life insurance subsidiaries, Mitsui Sumitomo Insurance Co. Ltd. and Aioi Nissay Dowa Insurance Co. Ltd. This merger is aimed at forming a dominant player in Japan's domestic non-life insurance sector, as declared by MS&AD's Board of Directors. The two firms have been collaborating under the same holding company for 15 years, with prior integration in their capital, risk management, and business strategies as confirmed by Soichiro Makimoto, an analyst from Moody's Ratings. While this merger is not expected to significantly impact their current credit, it is seen as a measure to enhance future integration, improve profitability, and address compliance issues such as price-fixing and information leakage. The merger aims to establish a stronger compliance framework, streamline IT systems, and optimize management resources for improved efficiency. The merger awaits approval from shareholders and further details will be shared later.