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Nippon Life Insurance Company


By : Aries Kurniawan

Company History Nippon Life Insurance Company


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Nippon Life Insurance, also known as Nissay, or Nihon Seimei (日本 生命?) Is the second largest life insurance company after Japan Post Insurance Co., Ltd. in Japan. The company was founded in 1889 as the Nippon Life Assurance Co., Inc., in the structure, this company is a joint enterprise, and for the first time as the policyholder pays dividends in 1898.

The insurance company is also a leading private company in the Japanese life insurance. The company, which has about 10 million policyholders, is using a door-to-door sales corps and other representatives to peddle traditional insurance products, including individual life, group and annuity policies, for Japanese consumers. In addition to life insurance products, the company managing the pension program, and has served the medical plan to provide asset management services, through its affiliates and subsidiaries. As well as serving in the field, selling cars, property / casualty insurance other in Japan. And also provide business for life, term life, hospitalization, medical, cancer, endowment, insurance teens, and provide financial services such as loans, securities, and real estate investment.


The Position of rating of firm Nippon Life Insurance Co is reflecting a strong competitive position in the domestic life insurance market and strong financial flexibility. On the other hand, these factors are offset by the weaknesses, including the relatively high exposure to equity holdings and capitalization is weaker than its peers.

Standard & Poor’s Ratings Services believed that Nippon Life to maintain a strong competitive position. As the largest life insurer in Japan in terms of in-force business and premium income, enjoys excellent brand recognition, and holds an extensive sales network, which consists of approximately 49,000 sales agents bound, approximately 11,000 independent agencies that complement the channel sales agent, and the passage of the branch network. The company’s effort is to strengthen the quality of agency that is bound in recent years has led to a steady improvement in the persistence of retention policies and institutions, which we see as a positive factor for credit quality.

Standard & Poor’s believes that Nippon Life to maintain a strong financial profile, supported by strong operating performance and capitalization, and favorable investment profile. However, we see a relatively weak financial profile as compared with other rating factors such as competitive position. In fiscal year 2011 (ending March 31, 2012), the core Nippon Life insurance benefits increased to JPY544.3 billion from JPY516.3 billion a year earlier, when it was hurt by the Great East Japan earthquake and tsunami that struck in March 2011. However, excluding the effect of estimated payments due to the disaster, the core insurance profit fell reflecting a decrease in-force policies. We hope the insurance company’s profitability to remain under pressure, based on our assumption that the policy in-force will continue to fall in the midst of a stagnant investment over the next two to three years.

The stable outlook reflects our view that Nippon Life will continue to maintain a strong competitive position in the Japanese life insurance market, supported by a large and stable franchise. We also expect Nippon Life to maintain a strong financial profile in the medium term. We can improve the ranking if the insurance company enhances its competitive position by increasing new business in-force to redeem reduce-force policies, if strengthened financial profile by enhancing core insurance benefits, and materials to strengthen its capital base. Conversely, we may lower the ratings if we see a decline in the company’s financial profile. Hopefully with this information makes us gain more knowledge to choose which health insurance is actually in accordance with our expectations, hopefully can help


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