Sompo Japan Insurance Inc. President Hiroshi Hirano announced Wednesday that he will become chairman in late June after being replaced by Managing Director Masatoshi Sato as the company deals with scandals that have drawn sanctions from the government.

If the move is approved at Sompo Japan's general shareholders' meeting late next month, Sato will replace Hirano, who will give up the right to represent the firm.

The announcement came the same day it was reported that the troubled insurance firm will be suspended by the Financial Services Agency over unlawful sales practices. The order is expected by week's end.