Mitsui Sumitomo, Aioi Nissay Dowa maintain capital strength ahead of 2027 merger

Overseas operations now contribute around 40% of premium income.

Mitsui Sumitomo Insurance (MSI) and Aioi Nissay Dowa Insurance (ADI), both part of MS&AD Insurance Group, are expected to maintain stable capital and earnings over the near term, according to AM Best.

MSI is supported by strong underwriting results, reduced catastrophe losses, and overseas growth—particularly from its European and US. businesses. 

It maintains the highest level of capital adequacy, and planned reductions in domestic equity holdings are expected to lower market risk exposure. 

Overseas operations now contribute around 40% of premium income.

ADI also remains well-capitalised, with steady domestic profit in fiscal 2024 from higher premiums and equity disposal gains. 

Its overseas exposure is modest and focused on Toyota-related auto insurance, limiting diversification.

The planned merger of MSI and ADI in 2027 is expected to enhance MS&AD’s market position, although integration risks remain.