Nippon Life First-Half Net Triples as Investments Improve

Nippon Life Insurance Co. [85457], Japan's largest mutual life insurance group, saw its first-half net income surge on improved investment income, even as premiums fell.

First-half net income rose to 125.3 billion yen (US$1.4 billion), from 38.5 billion yen a year ago.

In the first half of the 2009 fiscal year ended Sept. 30, Nippon Life reported a drop in premium income to 2.4 trillion yen from 2.5 trillion yen a year earlier. Investment income increased to 858 billion yen from 631 billion yen.

A weakening job market, lowering consumption and decreasing domestic investment are the economic challenges in Japan's life market, although there has been a rebound in exports supported by recovery in emerging markets, according to Nippon Life.

Nippon Life's total assets stood at 47.5 trillion yen by September, up 3.6% from the previous year's 45.8 trillion yen. It solvency margin ratio was 1,091.6, up from 904.4 a year earlier.

In the first half, total in-force individual life insurance fell 3.4% to 185.8 trillion yen in premiums while annuity premiums rose 1.4% to 17.7 trillion yen. Sales of new individual life insurance increased 4.3% to 2.8 trillion yen in premiums, but new annuity premiums fell 14.4% to 613 billion yen.