(Reuters) — Sompo Holdings Inc. will put more focus on integrating domestic and overseas operations for further growth after a period of overseas acquisitions boosted the global presence of Japan’s No. 3 non-life insurance group, a senior executive said.
“We quickly shifted capital allocations abroad to secure a foothold in emerging markets, with a sense of urgency over a rapidly aging domestic market,” the group’s chief operating officer, Mikio Okumura, told Reuters.
“Now that our non-life business overseas has grown almost to the size of the domestic business, we no longer need to differentiate strategies for foreign and domestic operations,”; he said.
Sompo accelerated its global push with its $6.3 billion acquisition of US property/casualty insurer Endurance Specialty Holdings in 2017, giving the Japanese company a much-needed foothold in the US.
It also bought five more companies in the past five years, including U.S. agricultural insurer Diversified Crop Insurance Services in 2020.
Sompo forecast an adjusted group profit of 100 billion yen ($746 million) for the overseas insurance business in the year ended March. The group’s total adjusted consolidated profit is estimated at 160 billion yen.
Mr. Okumura said he does not see an imminent need for further acquisitions.
“We could achieve organic revenue growth of a few tens of billions of yen in one or two years by hiring a team of professionals instead of rushing for more deals,” he said.