Net premiums written dropped 1.7% YoY due to lower overseas insurance subsidies.
MS&AD Insurance recorded a 44% plunge in net income to $1.42b (JPY150b) for the nine months that ended 31 December 2021, according to a statement.
Net premiums written went down 1.7% YoY to $440.5m (JPY46.5b) due to lower overseas insurance subsidiaries despite an increase in domestic non-life insurance subsidiaries.
Its two domestic non-life insurance firms combined posted a 0.6% increase in net premiums written to $119m (JPY12.6b) due to sales of fire and automobile insurance, which offset the negative impact from compulsory automobile liability insurance (CALI).
Fire insurance net premiums written increased by $274m (JPY29b) due to the rate revision in October 2019 and brisk sales of commercial fire insurance. Automobile net premiums written grew $203.7m (JPY21.5b) driven by the January 2020 rate revision and the increase in the unit price.
Net premiums written for CALI decreased $350m (JPY36.9b) due to the effect of the rate revision and a decrease in the number of vehicles. Net premiums written at overseas insurance subsidiaries declined 10.1% due to the impact of the strong yen and efforts to improve MS Amlin’s profitability.
Meanwhile, domestic life gross premiums plunged 25% to $4.8b (JPY510.1b) due to the pandemic. Net income surged to $340m (JPY35.9b) due to a decrease in gains on sales of bonds and lower provision for policy reserves associated with the occurrence of contracts that reached the investment target set by policyholders during the depreciation of the yen, as well as a decrease in the burden of agency commissions.
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