Nipponkoa Insurance Co., Japan's fourth-largest casualty insurer, said Friday it began discussions with Zurich Insurance Co. on a possible alliance to boost domestic earnings.
The alliance will focus primarily on Japanese corporate insurance business, Tokyo-based Nipponkoa said in an e-mailed statement. Zurich Insurance is a unit of Zurich-based Zurich Financial Services AG, Switzerland's biggest insurer.
Nipponkoa last week raised its profit target and vowed to cut costs and increase sales in response to pressure from its biggest shareholder, Southeastern Asset Management Inc. The company targeted annual net income of ¥25 billion by March 2011, compared with a goal for the current year of ¥9 billion.
The plan is designed to appease Memphis, Tenn.-based Southeastern, which in June opposed the re-election of Chief Executive Officer Makoto Hyohdo.
Tokio Marine plan
Tokio Marine Holdings Inc., Japan's biggest casualty insurer, aims to boost profit ninefold by the year ending in March 2012 as it generates earnings from two acquired overseas firms, the company said Friday.
The Tokyo-based company is targeting adjusted earnings of ¥220 billion, compared with ¥24.2 billion for the fiscal year ending March 31, it said in a statement to the TSE.