MIRA INFORM REPORT

 

 

Report Date :

16.03.2013

 

IDENTIFICATION DETAILS

 

Name :

SOMPO JAPAN INSURANCE INC

 

 

Registered Office :

1-26-1 Nishishinjuku Shinjukuku Tokyo 160-8338

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

February 1944

 

 

Com. Reg. No.:

0111-01-023372 (Tokyo-Shinjukuku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Non-life insurance

 

 

No. of Employees :

21403

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit : 

Yen 12,570.7 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular 

 

 

Litigation :

–--

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

 

Source : CIA

 


Company name

 

SOMPO JAPAN INSURANCE INC

 

 

REGD NAME

 

KK Songai Hoken Japan

 

 

MAIN OFFICE

 

1-26-1 Nishishinjuku Shinjukuku Tokyo 160-8338 JAPAN

 

      Tel: 03-3349-3111     

 

URL:                 http://www.sompo-japan.co.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Non-life insurance

 

BRANCHES

 

913 nationwide

 

 

OVERSEAS

 

192 in 28 countries

 

 

OFFICERS

 

KENGO SAKURADA, PRES      Masatoshi Sato, ch

Kaoru Takahashi, v pres             Hirotaka Arai, s/mgn dir

Keiji Nishizawa, dir                                 Masayoshi Hori, dir      

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 1,716,224 M

PAYMENTSREGULAR   CAPITAL           Yen 70,000 M

TREND STEADY           WORTH            Yen 578,607 M

STARTED         1944                 EMPLOYES      21,403

 

 

COMMENT    

 

NON-LIFE INSURANCE COMPANY.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 12,570.7 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

This is a non-life insurance company and in Oct 2010 merged with Nipponkoa Insurance Co and set up a holding company, NKSJ Holdings Co Ltd (See REGISTRATION).  As a non-life insurance company it covers fire, marine, casualty, automobile, compulsory auto liabilities, other. 

 

 

FINANCIAL INFORMATION

 

The revenues for Mar/2012 fiscal term amounted to Yen 1,716,224 million, a 5% up from Yen 1,637,215 million in the previous term.  The recurring profit was posted at Yen 3,964 million and the net losses at Yen 37,518 million, respectively, compared with Yen 20541 million recurring profit and Yen 12,124 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 4,000 million and the net profit at Yen 21,000 million, respectively, on a 2% rise in turnover, to Yen 1,750,000 million.  Automobile insurance is picking up on the premium rate markup.  Fire insurance is still in the red due to the frequent occurrence of natural disasters, though the impact of the Thai flood damage is gone.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 12,570.7 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Feb 1944

Regd No.:         0111-01-023372 (Tokyo-Shinjukuku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         2,000 million shares

Issued:                984,055,233 shares

Sum:                   Yen 70,000 million

Major shareholders (%): NKSJ Holdings Co Ltd* (100)

 

*.. Joint holding company founded thru consolidation of Sompo Japan, second-ranking non-life insurance firm, and Nipponkoa Insurance in Apr 2010, Tokyo, listed Tokyo & Osaka S/E’s, capital Yen 100,045 million, revenues Yen 2,790,555 million, operating profit Yen 1,973,777 million, recurring loss 51,815 million, net loss Yen 92,262 million, total assets Yen 8,567,444 million, net worth Yen 839,016 million, employees 35,710, pres Kengo Sakurada

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

           

Activities: Non-life insurance company, covering fire, marine, casualty, automobile, compulsory auto liabilities, others (--100%)

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (H/O)

Mizuho Trust Bank (H/O)

Relations: Satisfactory

 

 


FINANCES

 (In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

1,750,000

1,716,224

1,637,215

1,661,802

Recur. Profit

 

21,000

3,964

20,541

50,318

Net Profit

 

13,000

-37,518

12,124

42,774

Total Assets

 

 

4,698,720

5,990,780

6,164,068

Current Assets

 

 

4,600,592

4,786,371

5,029,372

Current Liabs

 

 

4,021,985

4,090,334

4,209,051

Net Worth

 

 

578,607

696,037

820,181

Capital, Paid-Up

 

 

70,000

70,000

70,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

1.97

4.83

-1.48

..

    Current Ratio

 

..

114.39

117.02

119.49

    N.Worth Ratio

..

12.31

11.62

13.31

    R.Profit/Sales

 

1.20

0.23

1.25

3.03

    N.Profit/Sales

0.74

-2.19

0.74

2.57

    Return On Equity

..

-6.48

1.74

5.22

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.16

UK Pound

1

Rs.81.74

Euro

1

Rs.70.50

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.