MS&AD Insurance Group Holdings Inc has announced plans to integrate its two primary non-life insurance subsidiaries – Mitsui Sumitomo Insurance Co Ltd and Aioi Nissay Dowa Insurance Co Ltd – with the aim of completing the merger by April 2027.
The decision, approved by MS&AD’s board on March 28, signals a structural shift intended to consolidate operations and create a single entity with the largest market share in Japan’s non-life insurance sector.
The group said the merger would position it to adapt more efficiently to domestic market conditions and global risk trends.
“Our group has the vision of ‘Creating a world-leading insurance and financial group.’ To achieve this vision and support the development of a resilient and sustainable economy and society, we will proceed with discussions and preparations to merge Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance to build a more robust domestic non-life insurance business structure,” it said.
MS&AD said that the unified organisation will combine operational capabilities from both companies, seeking to streamline administrative processes and enhance its ability to deliver insurance products and services.
“This merger will establish a non-life insurance company that holds the top market share in the domestic non-life insurance sector,” MS&AD said. “Our group aims to enhance the value we provide to customers by integrating the strengths of Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance in the domestic non-life insurance business.”
The company also noted that the integration would focus on operational efficiency and regulatory compliance.
“We are committed to strengthening efforts to meet customer trust and expectations while consistently securing profits commensurate with the size of the top line. Furthermore, we aim to establish a system to offer the best products and services to customers by investing accumulated capital into growth areas such as international business, domestic life insurance business, and digital/risk-related services,” it said.
The announcement coincided with administrative action from Japan’s Financial Services Agency (FSA), which issued business improvement orders to both Mitsui Sumitomo and Aioi Nissay Dowa.
The FSA directive follows recent issues involving improper handling of personal data and violations related to fair competition practices.
The orders require both insurers to:
Updated plans must be submitted to the FSA by May 30, with implementation to begin upon approval. Ongoing progress reports are to be filed quarterly, starting in September.
In response, MS&AD issued a statement acknowledging the directive and outlining steps to improve group oversight.
“[MS&AD, MSI, and ADI] take the administrative actions very seriously and apologise for inconvenience or concern this situation may have caused our customers and other stakeholders,” it said.
In line with these reforms, MS&AD plans to restructure its board governance. The company will move toward a model with an audit and supervisory committee and a majority of independent directors, aiming to improve internal oversight across group companies.
Looking ahead, MS&AD indicated it would continue investing in growth areas such as international insurance, digital platforms, and life insurance. The group said it plans to optimise its capital allocation to support long-term profitability and resilience in a competitive insurance landscape.
Additional details regarding the merger, including executive leadership and branding, are expected to be disclosed as discussions progress.
