MIRA INFORM REPORT

 

 

Report Date :

21.09.2013

 

IDENTIFICATION DETAILS

 

Name :

MS & AD INSURANCE GROUP HOLDINGS INC

 

 

Registered Office :

Yaesu First Financial Bldg, 1-3-7 Yaesu Chuoku Tokyo 103-0028

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

April 2008

 

 

Com. Reg. No.:

010-01-1116542 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Management of non-life & life insurance companies of 5 directly invested Group companies.

 

 

No. of Employees :

36,643

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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

 

MS & AD INSURANCE GROUP HOLDINGS INC

 

 

REGD NAME 

 

MS & AD Insurance Group Holdings KK

 

 

MAIN OFFICE

 

Yaesu First Financial Bldg, 1-3-7 Yaesu Chuoku Tokyo 103-0028JAPAN

Tel:                   03-6202-5270          -

URL:                 http://www.ms-ad-hd.com

E-Mail address: (thru The URL)

 

 

ACTIVITIES  

 

Management of non-life & life insurance companies of 5 directly invested Group companies

 

 

CHIEF EXEC 

 

TOSHIAKI EGASHIRA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 4,315,787 M

PAYMENTS      REGULAR         CAPITAL           Yen 100,000 M

TREND             UP                    WORTH            Yen 2,021,625 M

STARTED         2008                 EMPLOYES      36,643

 

 

COMMENT    

 

MANAGEMENT OF NON-LIFE & LIFE INSURANCE COMPANIES 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 37,837.7 MILLION, 30 DAYS NORMAL TERMS

 

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is a Holding Company formed in 2010 incorporated Mitsui Sumitomo Insurance Group Holdings with Nissay Dowa General Insurance, Aioi Insurance, Toyota Motor and Nippon Life Ins, listed as major shareholders.  The purpose of MS&AD Insurance Group is to achieve sustainable growth and to enhance enterprise value through the creation of a world-class insurance and financial services group that operates globally, by rapidly and significantly improving quality and expanding its operating presence and corporate resources.  The company is planning to start business reorganization involving contractual transfer in Apr 2014.  It will release new-type insurance policies to encourage agricultural export.  It will buy back 2.5 million own shares for 5 billion Yen at maximum.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 4,315,787 million, a 14.6% up from Yen 3,764,986 million in the previous term.  Negative impacts on floods in Thailand faded away.  During the term, the Japanese economy showed some signs of recovery, as mfg activity gradually increased after dropping in the wake of the Great East Japan Earthquake.  Overall, however, the recovery was muted due to the Yen’s appreciation and sovereign debt crisis in Europe.  The Group focused on expanding the domestic insurance business, including overseas business, financial services business.  It improved the quality of products and services and enhanced profitability and growth potential.  To pursue group synergies, the Group focused on integrating systems and enhancing the efficiency of operations through measures such as the joint use of agency systems.  The recurring profit was posted at Yen 150,300 million and the net profit at Yen 83,625 million, respectively, compared with Yen 96,211 million recurring loss and Yen 169,469 million net losses, respectively, a year ago. 

 

(Apr/Jun/2013 results): Sales Yen 1,045,065 million (down 6.5%), recurring profit Yen 118,070 million (up 515.7%), net profit Yen 83,148 million (up 638.2%).  (% compared with the corresponding period a year ago.)

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 191,000 million and the net profit at Yen 125,000 million, on a 9% rise in turnover, to Yen 4,700,000 million.  New policyholders of life insurance will increase steadily, but transfer to liability reserve will rise.  In nonlife insurance, automobile insurance will recover to breaking even, supported by insurance premium hike.  Ire insurance will also improve, with decreased natural disasters at home.  Overseas operations will expand, led by Asian markets.  Valuation loss on equity on hand will shrink.  Net profit will hit all-time high. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 37,837.7 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:  Apr 2008

Regd No.:         010-01-1116542 (Tokyo-Chuoku)

Legal Status:     Limited Company (Kabushiki Kaisha

Authorized:       900 million shares

Issued:             633,291,754 shares

Sum:                Yen 100,000 million

 

Major shareholders (%): Toyota Motor (8.3), Nippon Life Ins (5.7), Master Trust Bank of Japan T (5.0), Japan Trusty Services T (4.6), State Street Bank & Trust (3.9), Chase London SL Omnibus Acc (2.0), SSBT OD05 Omnibus Acc Treaty C1 (1.8), Company’s Treasury Stock (1.8), State Street Bank & Trust 505225 (1.3), Mellon Bank Mellon Omnibus US P (1.2); foreign owners 36.0)

 

No. of shareholders: 53,693

 

Listed on the S/Exchange (s) of: Tokyo, Nagoya

 

Managements: Toshiaki Egashira, pres; Yasuyoshi Karasawa, rep dir; Hisahito Suzuki, rep dir; Masanori Yoneda, rep dir; Susumu Fujimoto, s/mgn dir; Shuhei Horimoto, s/mgn dir; Toshihiko Tanaka, dir; Shiro Fujii, dir

 

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

 

Related companies: Mitsui Sumitomo Ins, Aioi Nissay Dowa Ins, Mitsui Direct General Ins, Mitsui Sumitomo Aioi Life Ins, and Mitsui Sumitomo Primary Life Ins (--subsidiaries).

 

 

OPERATION

           

Activities: Management of five non-life & life insurance companies (subsidiaries): fire insurance (13%), marine insurance (3%), casualty insurance (8%), automobile insurance (51%), automobile liability compulsory insurance (12%), others (12%).

Overseas Sales Ratio (10%)

           

Clients: Business firms, individual consumers, municipalities, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

 

Payment record: Regular

 

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

 

Bank References:          SMBC (Tokyo)

                                    Sumitomo Mitsui Trust Bank (H/O)

Relations:                     Satisfactory

 

 

FINANCES

 

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

 

  Annual Sales

　

4,315,787

3,764,986

 

  Cost of Sales

3,574,397

3,265,396

 

      GROSS PROFIT

741,390

499,590

 

  Selling & Adm Costs

508,454

515,270

 

      OPERATING PROFIT

232,936

-15,680

 

  Non-Operating P/L

-82,636

-80,531

 

      RECURRING PROFIT

150,300

-96,211

　

      NET PROFIT

83,625

-169,469

BALANCE SHEET

 

 

 

 

 

  Cash

　

536,383

649,505

 

  Receivables

 

224,025

178,679

 

  Inventory

 

93,013

86,814

 

  Securities, Marketable

11,398,945

10,220,605

 

  Other Current Assets

1,904,436

3,346,909

 

      TOTAL CURRENT ASSETS

14,156,802

14,482,512

 

  Property & Equipment

488,069

501,209

 

  Intangibles

 

177,693

138,789

 

  Investments, Other Fixed Assets

1,092,099

(585,306)

 

      TOTAL ASSETS

15,914,663

14,537,204

 

  Payables

 

12,544,284

11,998,690

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

0

0

 

      TOTAL CURRENT LIABS

12,544,284

11,998,690

 

  Debentures

 

291,176

271,165

 

  Long-Term Bank Loans

790,243

609,472

 

  Reserve for Retirement Allw

111,130

106,151

 

  Other Debts

　

156,205

39,591

 

      TOTAL LIABILITIES

13,893,038

13,025,069

 

      MINORITY INTERESTS

 

 

 

Common stock

100,000

100,000

 

Additional paid-in capital

682,752

682,753

 

Retained earnings

353,506

303,464

 

Evaluation p/l on investments/securities

891,253

495,851

 

Others

 

18,937

(45,133)

 

Treasury stock, at cost

(24,823)

(24,801)

 

      TOTAL S/HOLDERS` EQUITY

2,021,625

1,512,134

　

      TOTAL EQUITIES

15,914,663

14,537,204

CONSOLIDATED CASH FLOWS

 

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

118,751

-205,272

 

Cash Flows from Investment Activities

-165,248

149,960

 

Cash Flows from Financing Activities

33,590

65,442

　

Cash, Bank Deposits at the Term End

　

716,221

711,710

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

 

Net Worth (S/Holders' Equity)

2,021,625

1,512,134

 

 

Current Ratio (%)

112.85

120.70

 

 

Net Worth Ratio (%)

12.70

10.40

 

 

Recurring Profit Ratio (%)

3.48

-2.56

 

 

Net Profit Ratio (%)

1.94

-4.50

 

 

Return On Equity (%)

4.14

-11.21

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.24

UK Pound

1

Rs.99.90

Euro

1

Rs.84.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.