Japanese Nonlife Insurers Post Lower Profits in 1st Half

Tokyo, Nov. 18 (Jiji Press)--Three major Japanese nonlife insurance groups posted substantially lower consolidated net profits for the fiscal first half ended in September due to large benefit payments overseas. Benefits paid by the three groups over hurricanes and earthquakes in North and Central America in August and September totaled about 230 billion yen. But MS&AD Insurance Group Holdings Inc. (TYO:8725), one of the three groups, said the payments will not affect its finances and business operations. "There will be a big impact on annual earnings but risks are strictly controlled," said Nampei Yanagawa, senior executive officer and chief risk officer at MS&AD. MS&AD's net profit fell 23.0 pct from a year before to 75.7 billion yen. Tokio Marine Holdings Inc. (TYO:8766) saw its net profit drop 50.6 pct to 76.7 billion yen, while Sompo Holdings Inc.'s (TYO:8630) net profit tumbled 95.6 pct to 1.9 billion yen. But all the three companies posted record premium revenue partly thanks to strong sales of fire insurance products. MS&AD's premium revenue rose 1.3 pct to 1,864.1 billion yen, while Tokio Marine's premium revenue gained 6.2 pct to 1,806.4 billion yen. Sompo's premium revenue climbed 17.1 pct to 1,498.8 billion yen. The three companies lowered their net profit forecasts for the full year ending next March.[EARNINGS]Copyright JIJI PRESS LTD.