Japanese P/C Insurer Unable to Pay Debts, Ceases Operations

Daiichi Mutual Fire and Marine Insurance Co. ceased operations on government orders, after the company was unable to pay accumulated debts which exceeded its assets by $485.5 million. It was the first Japanese p/c insurer to do so since World War II.

Analysts said that the relatively small company’s failure was not likely to affect the overall Japanese p/c market, which they characterized as “fundamentally sound.”