Meiji Life Insurance Co. logged a 20.2 percent year-on-year decline in sales of new personal insurance and annuity policies during the April-September period, the firm announced Friday.
Meiji, one of the seven major life insurers, also suffered a 6.9 percent decline in premium revenue compared to the same period last year. The figure stood at 1.1 trillion yen.
As a result, the firm’s total outstanding personal insurance and personal annuities contracts were worth 132.23 trillion yen, down 5.4 percent from last year’s first half.
Company officials, while saying they take the 20 percent fall on its new policy sales “gravely,” also stressed that the current statistics do not include revenues gained from “tokuyaku” optional contracts.
The firm has strategically shifted the focus of its marketing from conventional insurance to products that cover the medical needs of the insured through tokuyaku contracts, the officials said, adding that it has claimed a 11.5 percent jump in the sale of such products.
Meanwhile, two second-tier life insurers Kyoei Life Insurance Co. and Nippon Dantai Life Insurance Co. said Friday that they both suffered a decline in the total outstanding volume of personal insurance and personal annuity policies during the first half of fiscal 1999.
The total outstanding contracts of such policies were worth 44.56 trillion yen for Kyoei, down 6.5 percent, and 15.11 trillion yen for Nippon Dantai, down 4.9 percent.
The new sale of personal insurance and personal annuity policies — which make up a large part of insurers’ revenues — also fell for both firms during the half year period. Policies sold were 1.89 trillion yen for Kyoei, down 24.2 percent from the same period last year; and 521.4 billion yen for Nippon Dantai, down 25.9 percent.
The firms also said they held unrealized losses on their securities portfolios. Kyoei held 116.9 billion yen in hidden securities losses, including a 37 billion yen loss on domestic stock holdings. Nippon Dantai held 148.6 billion yen in unrealized losses on its securities overall, incurred mostly on its foreign securities due to the recent appreciation of the yen.
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