Main non-life insurance coverage firms plan to promote 500 billion yen price of Honda shares;

4 main non-life insurance coverage firms have determined to promote their Honda shares. All 4 firms had beforehand introduced plans to cut back their cross-shares to zero in response to the query of adjusting insurance coverage premiums for pre-owned firms, however will now transfer into full swing till the cross – cut back their shares by promoting main shares. The picture reveals the Honda brand. Picture taken in Bangkok in March 2022. (2024 Reuters / Athit Perawongmetha / File picture)

This was revealed by three folks aware of the state of affairs. Honda will determine to promote it quickly. Monetary establishments along with the 4 non-life insurance coverage firms, Tokio Marine & Nichido, Sompo Japan, Mitsui Sumitomo Insurance coverage, and Aioi Nissay Dowa, are additionally anticipated to promote Honda shares, and on the present inventory value stage, the whole quantity of the the provide is predicted to be round 500 billion yen.

Honda has set a 300 billion yen share buyback restrict for this fiscal yr, however on the finish of June, it didn’t.

Honda inventory is a key strategic funding inventory of main non-life insurance coverage firms, and is among the many prime 5 amongst Tokio Marine, Sompo Japan, and Mitsui Sumitomo Insurance coverage. In response to securities stories for the fiscal yr ending March 2024 submitted by every firm’s holding firms, the whole variety of Honda shares recorded on the steadiness sheets of the 4 firms exceeded 300 billion yen (however a- solely estimated shares). Tokio Marine holds 160.9 billion yen, Sompo Japan 81.2 billion yen, Mitsui Sumitomo Insurance coverage 73 billion yen, and Aioi Nissay Dowa 2.8 billion yen.

In December final yr, the 4 firms obtained enterprise growth orders from the Monetary Providers Company based mostly on the Insurance coverage Enterprise Regulation to vary insurance coverage premiums for companies upfront. The Monetary Providers Group raises the query that the quantity of strategic inventory impacts the portion of the contract. Earlier this yr, the 4 firms introduced plans to step by step cut back their emissions. Within the first yr, massive shares resembling Honda might be offered to make clear the discount coverage.

(Miho Uranaka, reporting help: Maki Shiraki, enhancing: Nobuhiro Kubo)

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