Meiji Life Insurance Co. and Yasuda Mutual Life Insurance Co. announced plans Thursday to merge by April 2004, putting the heat on other life insurers to follow suit in a bid to survive share price plunges, cutthroat competition and a decline in policyholders.
Meiji Life, Japan's fourth-largest life insurer, and Yasuda Mutual, the sixth largest, will form the nation's third-largest insurer with total assets worth 27.7 trillion yen and outstanding individual and group insurance contracts worth 316 trillion yen. It is the first consolidation announcement in the life insurance industry.
"The same companies have always lead the industry," Ryotaro Kaneko, president of Meiji Life, said. "We're out to challenge (industry giant) Nippon Life Insurance Co. in profitability, financial health and growth."