NU Online News Service, Jan. 24, 1:22 p.m. – Meiji Mutual Life Insurance Company, Tokyo, has announced plans to merge with another Tokyo carrier, Yasuda Mutual Life Insurance Company, by April 2004.
The deal would create the third biggest life insurance company in Japan.
Meiji, which has the equivalent of $130 billion in assets, reported $762 million in net income for the fiscal year that ended March 31, 2001, on $26 billion in revenue, according to Hoover’s Inc., Austin, Texas .
Yasuda reported $1 billion in net income on $15 billion in revenue and $74 billion in assets.
Both companies are strong and have achieved solid sales growth, but both have experienced high surrender and lapse rates, according to Japan Credit Rating Agency Ltd., Tokyo.
Runa Ichihari and Tatsuo Kurogi, analysts in the Tokyo office of Standard & Poor’s, put out a commentary suggesting the proposed merger could put even more pressure on other Japanese life insurers to consolidate and increase efficiency.