Japan: Record net profits for 2 nonlife insurers

Two of three major nonlife insurance groups logged record-high net profits for the first half of fiscal 2014, according to their earnings reports, according to Japan News.

For the April-September period, consolidated net profit increased 56.3 percent from a year before to JPY142.9 billion at Tokio Marine Holdings Inc. and 0.1 percent to JPY109.6 billion at MS&AD Insurance Group Holdings Inc.

The yen’s depreciation helped increase investment gains, and profitability improved in mainstay automobile insurance, according to the companies.

Sompo Japan Nipponkoa Holdings Inc., however, saw net profit fall 47.1 percent to JPY15.4 billion, weighed down by expenses of nearly JPY80 billion for a merger of group nonlife insurers.

Net premium revenue rose at all three firms, reflecting hikes of auto insurance premium rates, with increases of 7.2 percent to JPY1.52 trillion at Tokio Marine, 4.4 percent to JPY1.49 trillion at MS&AD and 11.2 percent to JPY1.24 trillion at Sompo Japan.

Insurance payouts for traffic accidents fell, helping push up profits. Fire insurance payments were limited although large typhoons and other natural disasters hit Japan.