Nippon Life Insurance Essay ⋆ Business Essay Examples ⋆ EssayEmpire

Nippon Life Insurance Co. (Nihon Seimei Hoken Sōgo-gaisha or Nissay in Japanese) provides life insurance products to individual and corporate customers.

In addition to providing life insurance and annuity products, the company engages in real estate development and management and in a variety of educational and philanthropic projects.

Nippon Life employs around 62,000 people (as of January 1, 2008). Its headquarters is located in Osaka, Japan. Although the company primarily operates in Japan, where it has 130 branch offices, it also has operations in North America, Europe, and Asia, including a New York representative office. Nippon Life’s principal overseas subsidiaries have also offices in the United Kingdom, Germany, and China.

While Nippon Life engages in the life insurance business, its subsidiaries and affiliates conduct nonlife insurance and other life insurance operations. Its business includes underwriting whole life, whole life medical treatment, long-term care, term life, retirement, and reinsurance policies. Nippon Life provides insurance accounts that allow customers to combine death, medical treatment, long-term care, retirement, and nonlife coverages. Moreover, the company provides asset management; serves as proxy for other insurance companies and other financial institutions; and engages in credit guarantees, counter sales, private placement of securities, transaction of trading securities, and sales of investment securities and investment trust beneficiary securities.

Nippon Life’s underwriting insurance is a product of its life insurance business licenses. Its asset management contains financial assets invested in loans, securities, and real estate. Nippon Life underwrites bonds and then offers them to the public.

History

Historically, the company has been successful. It was established as a limited company in 1889. In 1891, the company was renamed Nippon Life Assurance Co. The company then faced a major restructuring and reformed as a mutual company in 1947. Nippon Life continued its operations by choosing to grow either by acquiring other companies or by forming joint ventures.

Major events in Nippon Life’s history include the 1991 foundation of a U.S. insurance subsidiary, Nippon Life Insurance Company of America, which enabled Nippon Life to offer products and services under its own brand. In 1997, the company established a joint venture called Nippon Life Insurance Company of the Philippines. Also in 1997, Nippon Life acquired shares of a Thailand insurer, Bangkok Life Assurance. The company later increased its stake in Bangkok Life Assurance. In 2003 the company established Chinabased Nissay-SVA Life Insurance in a joint financing agreement with a consumer electronics manufacturer in China. Beginning in 2007, this joint venture offered insurance products related to stock investment. In 2008 Nippon Life became the largest shareholder of the U.S.-based Principal Financial Group.

Key executives of Nippon Life include Ikuo Uno (chairman), Kunie Okamoto (president), Mitsuhiro Ishibashi (vice chairman). Members of the board of directors include Eitaro Waki, Takashi Minagawa, Tetsuro Taki, Keizo Tsutsui, Kiyoshi Ujihara, Chiaki Hamaguchi, Yoichi Fujita, Yoshikazu Takeda, Kenichi Kobayashi, Yoshinobu Tsutsui, Takeshi Furuichi, Yoshihisa Akiyama, Akito Arima, and Shin Ushijima.

Market Position

Nippon Life is successful for many reasons. First, it is the foremost figure in the Japanese insurance market. Thanks to its long history and leading market position, the company enjoys strong brand awareness and brand loyalty. Also, supported by its massive financial resources, the company dominates the Japanese market with greater bargaining power than its rivals. Nippon Life has managed increasing profitability in its operations. Through strong profitability, the company attracts investors and provides a strong base for future growth plans.

Probably the best way to assess the power of Nippon Life is to review its strong solvency margin. The solvency margin ratio is one of the indicators that determine whether a company has the leeway to pay benefits in the event of a catastrophe or a stock market collapse. This ratio not only proves that Nippon Life is a strong insurance company, but also shows its ability to threaten its competitors.

Bibliography:

Nippon Life, www.nissay.co.jp (cited March2009).

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