Sompo Japan, Bank of Shanghai to ally: report


AFP

TOKYO–Japan’s major non-life insurer Sompo Japan Insurance Inc. will form a sales partnership with China’s Bank of Shanghai, a newspaper said Sunday. Sompo Japan, a unit of NKSJ Holdings Inc., and the major Chinese commercial bank will announce the deal as early as Monday, the Nikkei business daily reported. As a first step, the Chinese arm of Sompo Japan will sell insurance products through Bank of Shanghai to corporate clients in January, the newspaper said. Sompo Japan aims to shore up its earnings base by tapping demand in the fast-growing Chinese market, while Bank of Shanghai will earn sales commissions and acquire Japanese insurance know-how, it said. The partners will also jointly develop medical insurance for the wealthy in China, it added. Bank of Shanghai was founded in 1995 and has more than 200 branches in Shanghai alone. The Chinese government is the bank’s top shareholder, with a 35 percent stake.