Yasuda Fire & Marine Insurance Co., Nissan Fire & Marine Insurance Co. and Taisei Fire & Marine Insurance Co. said Monday they have formally canceled their agreement to merge because of Taisei Fire's collapse last month.
The three nonlife insurers planned to merge on April 1 into Sompo Japan Insurance Inc.
After Taisei collapsed, however, Yasuda and Nissan announced they would try to merge themselves by July 1.
On Nov. 22, Taisei filed for protection from creditors under a special rehabilitation law for insurers, succumbing to the weight of massive claims stemming from the Sept. 11 attacks in the United States.
Rotating chairmanship
The Marine & Fire Insurance Association of Japan is increasing the number of firms that take turns chairing the organization, association officials said Monday.
Currently, the top three nonlife insurers -- Tokio Marine & Fire Insurance Co., Yasuda Fire & Marine Insurance Co. and Mitsui Sumitomo Insurance Co. -- take the chair on a one-year rotation.
Now, fourth-ranked Aioi Insurance Co. and Nipponkoa Insurance Co., ranked fifth, will join the rotation system, officials said.
The move is intended to alleviate the burden borne by the top three firms, they said.
The association, currently headed by Hiroyuki Uemura, president of Mitsui Sumitomo Insurance, will soon formalize the decision at a board meeting, the officials added.