[Company analysis] Sompo Holdings, Inc. (SOMPOホールディングス)

「Sompo Holdings, Inc. (SOMPOホールディングス)」is a holding company which owns「Sompo Japan Nipponkoa Insurance Inc.(損害保険ジャパン日本興亜株式会社)」. It is a mega non-life insurance company equivalent to「MS & AD Insurance Group Holdings(MS&ADインシュアランスグループホールディングス)」and「Tokio Marine Holdings, Inc.(東京海上ホールディングス)」. They also handle nursing care and health care, inclduing the domestic non-life insurance business. The number of consolidated employees is approximately 45,326.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Sompo Holdings, Inc.
Company name (Japanese)	SOMPOホールディングス
Date of establishment	Thursday, April 1, 2010
Headquarters location	〒160-8338 東京都新宿区西新宿1-26-1
Capital	100,000
Consolidated sales	3,643,040
Consolidated operating profit	198,959
Consolidated total assets	12,018,254
Consolidated capital	1,779,911
Capital adequacy ratio	14.8%
Consolidated number of employees	45,326

 

 

 

2. Summary and Features

 
In April 2010,「NKSJ Holdings Co., Ltd.(NKSJホールディングス株式会社)」 was established as a joint holding company of「Sompo Japan Insurance Inc.(損害保険ジャパン)」and「NIPPONKOA Insurance Company(日本興亜損害保険)」. The company name of "NKSJ", was a combination of "NK" from Nippon Kouwa and "SJ" from Sonppou Japan. In 2014, the two companies decided to conduct business integration, by this event, they became one business entity under the name of「Sompo Japan Nipponkoa Insurance Inc.」.

 

At the time of the merger, it was the largest non-life insurance company. Although it is currently in second place, it is still the top class company for Japanese non-life insurance premium income. However, they are relatively weak at IT section compared to other mega non-life insurance companies, and this is pointed out as a weakeness. The industry is currently using electronic document-based communication rather than paper due to the spread of tablet terminals and PCs. But「Sompo Holdings」has tendency to depend on mainly analog devices.

 

The non-life insurance market in Japan is expected to shrink in size as the birthrate and birthrate decline. Therefore, Japanese non-life insurance companies are basically focusing on overseas expansion. However,「Sompo Holdings」rather concentrates on healthcare business in Japan. Actually, Japanese healthcare market itself has room for growth as the population ages.

In order to enhance healthcare business, in 2015,「SOMPO Holdings」purchased the nursing care business of 「Watami Co., Ltd.,」a well-known izakaya chain. Then, as a new business, the nursing care / healthcare business for dementia patients had been started and in 2017, this business turned into the black. Starting from this business, it is said that「SONPO Holdings」is planning various business developments such as housing reform business and extended warranty business.

 

 

3. Major Business

 

■ Non-life insurance business

■ Life insurance business

■ Overseas insurance business

■ Nursing care and healthcare business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidate revenue		3,419,530	3,770,052	3,643,040
Consolidate gross income		241,713	141,890	198,959
Consolidated total assets		11,931,135	11,948,323	12,018,254
Consolidated net assets		1,868,940	1,916,210	1,779,911
Breakdown of sales	Japan domestic Indemnity insurance	2,212,230	2,218,407	2,198,702
	Japan domestic Life insurance	317,311	341,998	523,972
	Nursing・Healthcare business	119,155	127,883	345,086
	Oversea insurance business	344,655	641,347	127,405
	Others	18,558	20,232	13,250
	Adjustments	407,619	420,183	434,622