The nation's seven major nonlife insurers on Friday reported an increase in net profit in fiscal 2003, with rising Japanese stock prices offsetting profit falls in their mainstay automobile insurance services.

Reduced claims for natural disasters also improved the firms' financial health by reducing insurance payouts during the year that ended March 31, the firms said.

Sompo Japan Insurance Inc., the nation's second-largest nonlife insurer, swung into the black in fiscal 2003, raking in 64.1 billion yen in net profit.

It posted a net loss of 26.9 billion yen the previous year.

Sompo Japan's net premium revenue, which corresponds to sales in other businesses, rose 2.6 percent from a year earlier to 1.3 trillion yen.

"The rise in stock prices in March contributed to the rise in our profits," said Masatoshi Sato, an executive officer at Sompo Japan.

Rising stocks boost insurers' earnings through sales or appraisals of their stockholdings.

The seven insurers generated a combined paper gain of 3.89 trillion yen.

Nipponkoa Insurance Co. and Nissay Dowa General Insurance Co. also returned to profitability. Nipponkoa reported a net profit of 15.8 billion yen, while Nissay Dowa's net profit came to 5.5 billion yen.

Millea Holdings, the nation's largest nonlife insurer, increased its net profit by 6.7 percent to 116.4 billion yen.

Millea Holdings, which has Tokio Marine & Fire Insurance Co. and Nichido Fire & Marine Insurance Co. under its wing, reported net premium revenue of 1.9 trillion yen, up 2 percent.

Mitsui Sumitomo Insurance Co. posted a net profit of 72.9 billion yen, up 125.4 percent. It posted net premium revenue of 1.2 trillion yen, up 3.4 percent.

Aioi Insurance Co. posted a net profit of 27.3 billion yen, up 165 percent from a year earlier. Kyoei Fire & Marine Insurance Co. posted a net profit of 1 billion yen, up 112 percent from the previous year.

Despite the rise in net profit, the nonlife insurers, except for Nissay Dowa General, saw reduced profit from automobile insurance amid cutthroat competition.