February 26, 2001
Meiji Life Insurance Company
The Nippon Fire & Marine Insurance Co., Ltd |
- Business Alliance Between
- Meiji Life Insurance Company and
- The Nippon Fire & Marine Insurance Co., Ltd.
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Meiji Life Insurance Company (Ryotaro Kaneko, President) and The Nippon Fire & Marine Insurance Company Limited (Ken Matsuzawa, President) has reached a basic agreement on a business alliance between the two companies as follows:
1. Background and Purposes of the Business Alliance
The operating environment surrounding the insurance industry in Japan has become increasingly severe as a result of the rapid progress of deregulation following the financial Big Bang, the deterioration of investment environment due to the continued stagnant Japanese economy, the development of IT revolution, and the insolvencies of financial institutions including insurance companies, etc.
In order to continue to enhance customer trust in this challenging operating environment, the insurance companies, on their own responsibility, need to maintain and enhance their operational efficiency to keep offering competitive products and services and strengthen the management infrastructure such as information systems, as well as to further improve their financial soundness and profitability.
Recognizing these circumstances, the two companies have mutually agreed to cooperate in the specific areas in which the two companies can strengthen their customer service capabilities and improve their operational efficiency by entering the business alliance, while maintaining the existing competitive strengths of each company.
2. Form of the Alliance
The two companies will select the specific areas of alliance in the following viewpoints in mind :(1) an area in which the two companies can realize synerzy by cooperating each other, and (2) an area where one company can provide an effective solution to the other company in solving a challenge relating to its insurance operations. Each tie-up theme thus selected will be individually studied for the implementation.
This business alliance aims to be mutually beneficial to the two companies in their efforts to solve specific management challenges and issues which the two companies are commonly facing. The primary purpose of the business alliance between the two companies is to enhance customer convenience in the Japanese insurance industry where the competition is expected to further intensify.
3. Areas of the Alliance
At present, the two companies have agreed to cooperate in the areas listed below:
(1) Regional Financial Institution Market
•Since the two companies have been enjoying very close relationship with rather many regional financial institutions as their common customers, the two companies will be able to enhance service capabilities to such regional banks by cooperating in this important market.
•Specifically, the two companies will jointly develop the life and non-life insurance agency system, which is targeted for mainly those insurance agencies affiliated with regional financial institutions, and thereby respond to the various needs of such insurance agencies which intend to sell life and non-life insurance products comprehensively.
•In addition, the two companies will consider the possibilities of tie-ups in the areas of sales promotion of insurance agencies and customer services by effectively utilizing the competitive strengths of the two companies.
(2) Nursing Care Related Services
•The two companies intend to fully utilize the know-how of the two companies in the area of the nursing care related services in order to provide a supreme level service in this field.
•Specifically, Nippon Fire will, in the first place, consider its participation in the nursing care related service operations of Meiji Life.
(3) Other Areas
•The two companies will continue to study other specific management issues and challenges which can be effectively solved by the cooperation of the two companies, depending on the future social and market environment.
4. Alliance Implementation Organization
In order to study and implement the details of the two business alliance areas, the two companies will immediately establish an Alliance Implementation Committee.
While Nippon Fire is scheduled to merge with The Koa Fire & Marine Insurance Company Limited on April 1, 2001 to form NIPPONKOA Insurance Company Limited, the new merged entity will continue to pursue this business alliance
Appendix: Outline of the two companies
As of End of March 2000
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Meiji Life Insurance Company |
The Nippon Fire & Marine Insurance Co., Ltd. |
Employees & Agencies |
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employees, |
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- sales representatives
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Number of Sales Offices |
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sales depts & branches, |
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agency offices |
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sales depts & branches |
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sales offices
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Total Assets |
- 16,846.2 billion yen
- (No. 4 in the industry)
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- 1,885.3 billion yen
- (No.5 in the industry)
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Premium Income(*1) |
- 2,300.4 billion yen
- (No. 4 in the industry)
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- 410.4 billion yen
- (No.6 in the industry)
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Solvency Margin Ratio |
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(Reference)
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- NIPPONKOA Insurance Co., Ltd.
- (Merger date: April 1, 2001)
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Number of Sales Base |
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sales depts & branches |
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sales offices |
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Total Assets (*2) |
- 3,187.8 billion yen
- (No. 3 in the industry)
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Premium Income(*1)(*2) |
- 681.6 billion yen
- (No. 4 in the industry)
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Solvency Margin Ratio(*2) |
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-
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( *1): |
- Premium Income:
- Premium Income and Reinsurance Income for Meiji Life
- Net Premium Written for Nippon Fire and NIPPONKOA
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(*2): |
- Total Assets, Premium Income and Solvency Margin Ratios are those for Fiscal 1999.
- The rankings are based on the numbers as of March 31, 2000 and the industry reflecting other mergers scheduled on April 1, 2001.
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- All right reserved. The Nippon Fire & Marine Insurance Co., Ltd.
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