Nippon Life Insurance Co. lost its No. 1 position in the domestic market to American International Group Inc. in terms of premium revenues from new contracts concluded with individuals in fiscal 2004, according to financial statements.
In the number of outstanding personal insurance policies, the Aflac Japan unit of American Family Life Assurance Co. had outdone Nippon Life at the end of last September.
U.S. firms have overtaken Nippon Life, which had held the top position in the life insurance market since the end of World War II, by adapting more readily to business climate changes, such as the aging population and the introduction of a deposit insurance cap, industry analysts said.
AIG put premium revenues from new life insurance and annuity contracts with individuals in Japan in fiscal 2004 at 321.7 billion yen for its three Japanese insurers -- the ALICO Japan unit of American Life Insurance Co., AIG Star Life Insurance Co. and AIG Edison Life Insurance Co.
Nippon Life's premium revenues in the year came to 256.4 billion yen.
The AIG companies have used TV commercials to boost sales of medical and nursing care insurance, and formed alliances with regional banks to achieve fast growth in personal-pension insurance sales.
In contrast, Nippon Life saw a decline of more than 20 percent in medical and nursing-care insurance sales.
ALICO Japan expanded its premium revenues in the year to 252.1 billion yen, close to Nippon Life's revenues, and is expected to outdo Nippon Life in fiscal 2005.