Top officials from Tokio Marine & Fire Insurance Co. and Asahi Mutual Life Insurance Co. will meet today to iron out the details of a proposed business integration, including the transfer of Asahi's sales division to a wholly owned subsidiary of Tokio Marine, company sources said Sunday.
Negotiations on the amount for the transfer to Tokio Marine Life Insurance Co. will continue until the tentative deadline of Jan. 31, they said. But the two firms refused to comment on specific amounts reported by the media, saying nothing has been decided.
The officials will also study the possibility of Tokio Marine & Fire providing funds to Asahi Mutual to bolster its capital base.
In November, the two insurers announced that Asahi Mutual would first sell the division to the Tokio Marine unit by March this year.
Upon completion of the sale, Asahi Mutual will focus on maintaining its existing policies while attempting to transform itself into a stock company before merging with the Tokio Marine unit in March 2003, the insurers said.
But Tokio Marine is apparently taking a cautious approach toward the merger, fearing possible damage to its financial standing. Its stock plunged after the November announcement.
Asahi Mutual, on the other hand, is reportedly seeking an early commitment on the deal from Tokio Marine because its earnings position has become fragile amid the deteriorating investment climate and the aftermath of the Sept. 11 terrorist attacks in the United States.
Tokio Marine and Asahi Mutual are to join to form the Millea Insurance Group in April this year along with Nichido Fire & Marine Insurance Co.
Tokio Marine is to merge with Nichido in April this year under a holding company to be set up soon.