Asahi Mutual Life Insurance Co. will likely secure the equivalent of a stock company net profit in the year to March 31 despite its plan to write off some 400 billion yen in latent stockholding losses, company sources said Saturday.
Asahi Mutual plans to report the latent losses either as pretax losses or extraordinary losses, the sources said.
In either case, they will be fully covered by sales of real estate that will result in profits of 90 billion yen, and by using some of the insurer's internal reserves, according to the sources.
Asahi Mutual is to transform itself into a stock company and come under the wing of Millea Holdings Inc. by 2004. The holding firm was launched April 2 by Tokio Marine & Fire Insurance Co. and Nichido Fire & Marine Insurance Co.