Aioi Insurance Co. will likely incur a loss of 126.1 billion yen from reinsurance claims on its U.S. agent in the fiscal year to March 31, or 28.2 billion yen more than it expected.
Aioi Insurance said Tuesday that the loss is related to its obligations under reinsurance contracts concluded with Fortress Re Inc. The claims include those stemming from the Sept. 11 attacks in the United States.
The nonlife insurer, which was created in the April 1 merger of Chiyoda Fire & Marine Insurance Co. and Dai-Tokyo Fire and Marine Insurance Co., said its chairman, Koji Fukuda, was demoted to an adviser Tuesday and will resign from the board at the end of March to take responsibility for the loss.