BANK-SOLD ANNUITIES BOOSTED PREMIUM INCOME AT JAPANESE INSURERS

Premium income at 13 Japanese major life insurers totaled 11.8 trillion yen (US$135 billion) for the six months ended Sept. 30, up 4.8 per cent from a year earlier.

Field sales personnel struggled, but insurance sales through bank branches increased 60 per cent, contributing to the higher premium income. Premium income rose at seven insurers and fell at the other six.

Meiji Yasuda Life Insurance Co. saw sales of fixed-amount annuities and other policies at bank branches rise more than 400 per cent, helping its overall premium income increase 21.2 per cent. Dai-ichi Mutual Life Insurance Co. and Sumitomo Life Insurance Co. enjoyed big gains in premium income, 14 per cent and 27.9 per cent , respectively, thanks to robust sales of variable annuities.

Premium income dropped 5.1 per cent at Nippon Life Insurance Co., hit by slumping demand for its fixed-amount annuities. Alico Japan suffered a 16 per cent plunge as banks held off on selling the insurer's products after a business crisis hit its U.S. parent, American International Group Inc. The decline was 18.4 per cent at Mitsui Life Insurance Co. mainly because it suspended sales of variable annuities.

Core operating profits were up at seven insurers but down at the other six, including Nippon Life, which cited declines in dividends from domestic stocks and yields on foreign bonds.