August 14, 2010 by staff
Marine Net, TOKYO (Nikkei) – The net premium income in the three main groups of non-life insurance rose 1.4% in the year to 1.75 trillion yen in April-June quarter, according to earnings results released Friday.
An increase in new car sales as a result of government subsidies for environmentally friendly cars and other incentives, they gave support to the main car insurance insurance business.
premium income from motor insurance rose 1.8% to 841 billion yen, while the figure for the liability insurance grew by 2.8% to 174.3 billion yen.
Net income in the MS & AD Insurance Group Holdings, Inc. (8725), Tokio Marine Holdings Inc. (8766) and NKSJ Holdings Inc. (8630) rose 31.2% to 111.2 billion yen. NKSJ Group’s net profit increased 250% to ¥ 13,400,000,000 largely return unit Sompo Japan Insurance Inc. s black with a profit to 10.2 billion yen. In the same period last year, Sompo Japan has booked charges related to the global financial crisis.
Tokio Marine Net income increased 59.6% to ¥ 56,400,000,000 as a strong yen contributed to a decrease in expenses for funds set aside to cover insurance claims denominated in foreign currencies.
MS & AD net profit fell 9.3% to 41.3 billion yen in system costs and other expenses related to integration. Member of the Group of Aioi Insurance Co. fell into the red with a net loss of ¥ 1,300,000,000, while Mitsui Sumitomo Insurance Co. unit ‘s net profit fell 34.6% to ¥ 19,200,000,000 erode due to investment.
For the second half, the outlook for insurance companies non-life appears uncertain. The end of the green car subsidies in late September could trigger the brakes on sales of automobiles and related premium income.
(August 14 edition of The Nikkei am)
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