Daiichi Mutual Fire & Marine Insurance Co. has decided to give up its restructuring efforts, paving the way for another company to take over the financially troubled insurer's operations, company sources said Sunday.
Daiichi Mutual Fire apparently plans to notify the Financial Supervisory Agency, the nation's financial industry watchdog, of its decision early next week. The FSA is expected to order the Tokyo-based insurer to suspend operations and assign an administrator the job of finding a company to take over the operations.
Daiichi Mutual Fire would be Japan's first nonlife insurer to collapse in the postwar era. The FSA began investigating Daiichi Mutual Fire in January. On April 10, it ordered the company to shore up its capital base and improve its management. The insurer failed to seek support from other companies to strengthen its financial position, the sources said.