Sompo Japan Nipponkoa Insurance Inc. will merge two online insurance units in a bid to improve efficiency and profitability in the domestic property and casualty insurance business.
The Japanese insurer said March 6 that Saison Automobile & Fire Insurance Co. Ltd. and Sonpo 24 Insurance Co. Ltd. agreed to merge to form one online P&C insurance company, with the former as the merging company.
The new company will focus on automobile insurance as its core product.
The transaction is expected to complete in July 2019, subject to approval from relevant authorities. The company said both units will set up departments in April to carry out preparations for the merger.
Sompo Japan Nipponkoa Insurance holds a 99.7% stake in Saison Automobile & Fire, while Sonpo 24 Insurance is a wholly owned unit.
Sompo Holdings Inc. is the ultimate parent of Sompo Japan Nipponkoa Insurance, Saison Automobile & Fire and Sonpo 24 Insurance.
