Japan’s Non-Life Insurers Must Cut Cross-Shareholdings to Zero, Industry Group Says

A trade group representing Japan’s biggest non-life insurers said on Thursday that its member firms should set a clear deadline to cut their strategic holdings of listed client shares to zero.

The General Insurance Association of Japan published the guideline for its members on cross-shareholdings, or purchase of the stock of their clients to deepen business ties, in order to ensure fair market environment. The guidelines also bans companies from taking on new cross-shareholdings.

Four of the group’s members, Tokio Marine, Sompo and MS&AD subsidiaries Mitsui Sumitomo Insurance and Aioi Nissay Dowa, have previously said they would bring all cross shareholding arrangements to zero in response to a price-fixing scandal last year.

(Reporting by Kantaro Komiya; editing by Christian Schmollinger)