August 28, 2007
Nihon Kousei Kyousaikai, Co., Ltd.
Nihon Kousei Kyousaikai
Millea Holdings, Inc.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Millea Holdings Takes Stake in Nihon Kousei Kyousaikai, Co., Ltd.
Millea Holdings, Inc. (President: Shuzo Sumi; hereinafter, the “Company”) and Nihon Kousei Kyousaikai, Co., Ltd. (Note 1) (President: Takeshi Kurata; hereinafter, “Nihon Kousei (Co.)”) have agreed to the Company making Nihon Kousei (Co.) its subsidiary, subject to the fulfillment of necessary requirements and the completion of the preparation for commencing operations including the registration of Nihon Kousei (Co.) as a Small-Amount & Short-Term Insurer (Note 2) with the Finance Bureau.
1. Background and purpose of making Nihon Kousei (Co.) a subsidiary of the Company
Tokio Marine & Nichido Fire Insurance Co., Ltd. (President: Shuzo Sumi; hereinafter, “Tokio Marine & Nichido”), a wholly-owned subsidiary of the Company, and Nihon Kousei (Org.) had come to a business alliance agreement on November 24, 2005 with the aim of expanding business operations in the insurance market related to real estate centered on residential lease market. Since then, both entities have been making collaborative efforts in their respective operations, Nihon Kousei (Org.) making preparations to become a small-amount short-term insurer, and Tokio Marine & Nichido examining its plan to take an approximately 10% stake in Nihon Kousei (Co.).
Meanwhile, in accordance with the amendment of the Insurance Business Law in April 2006, the current specified insurers including Nihon Kousei (Org.) are required to become an insurance company or a small-amount short-term insurer, or wind up its business in a specified time period, which would promote changes in the real estate lease-related insurance market.
It was determined that the best option would be to make Nihon Kousei (Co.) a subsidiary of the Company and further enhance the solid business operations in the fire insurance market for the leased real estate residents which have been developed by Nihon Kousei (Org.). This would be done by building upon the alliance over the past years, and we will exploit the evolving new markets in the aforesaid environment, which we view as business opportunity.
Combining the competitive business model of Nihon Kousei (Co.) with the expertise of Millea Group, we will expand our sales channels and provide products and services that can respond to the diverse needs and trust of our resident customers and also of the property leasing and management companies.
2. Future Schedule
3. Proposed outline of Nihon Kousei (Co.) after becoming a wholly-owned subsidiary of the CompanyNihon Kousei (Co.) plans to change its name after the registration as small-amount short-term insurer and the equity transaction by the Company. Proposed outline is as follows:
Corporate name: “Millea Nihon Kosei SS Insurance Co., Ltd.”
Address: 2-2-1-1 Minatomirai Nishi-ku, Yokohama City, Kanagawa Prefecture
President: Takeshi Kurata