Japanese Insurers Offload $11 Billion in Cross-Held Shares
Japan's three largest non-life insurers have divested a combined ¥1.64 trillion ($11 billion) of cross-held shares between April and December 2024. This move follows regulatory pressure to reduce such holdings.
Tokio Marine Holdings Inc. sold ¥781 billion, MS&AD Insurance Group Holdings Inc. disposed of ¥536.8 billion, and Sompo Holdings Inc. offloaded ¥328.5 billion of shares during the nine-month period.
The insurers have been under scrutiny after being fined in October 2024 for coordinating insurance fee adjustments. Reducing cross-shareholdings with other companies is a key target in improving governance. Insurers have committed to reducing these holdings over the next six to seven years.
"The sale of cross-shareholdings is progressing faster than anticipated, which is a positive development," said Mitsushige Akino, president of Ichiyoshi Asset Management.
The proceeds from the stock sales will be used for shareholder returns, mergers and acquisitions, and human resource investments. Revenue from share sales contributed to increased net income for all three insurers in the nine months to December.