Boasting a History of Value Creation

The Sompo Group traces its roots back to Japan’s first fire insurance company, established in 1888 with the aim of providing protection from the threat of fire in everyday life. Since then, Japanese society has changed due to the decline and aging of its population, climate change, and new conditions emerging as a result of technological innovation. In response, we have helped tackle issues by passing down and putting into practice a philosophy focused on working for the wellbeing of people and society. In the coming era, we will continue taking on the challenge of new value creation in order to realize our vision of “A Theme Park for Security, Health & Wellbeing.”

Staying True to Our Legacy

Tokyo Fire Insurance Company, Inc., the predecessor of Sompo Holdings’ core company Sompo Japan Insurance Inc., formed the Tokyo Fire Brigade to protect policyholders from fire 24 hours a day, 365 days a year. At the time, due to the large number of wooden homes, fire was a serious social problem, and our “insurance company firefighters” provided a service that was relied upon. With respect to customer protection, as an insurance company we have passed down a sense of mission and commitment over a history spanning more than 130 years. Consequently, this mind-set has become a central component of our Group Management Philosophy.

Integrating Businesses in Response to a Changing Operating Environment

Over the century following the founding of Tokyo Fire Insurance Company, the insurance industry became regulated under the so-called convoy system, with insurance providers offering similar insurance policies and premiums. In 1996, revisions to the Insurance Business Act (part of reforms that were Japan’s financial Big Bang) greatly accelerated deregulation, leading to intensified competition and a realignment of the insurance industry. Uniting strengths fostered by remaining customer-focused throughout their histories, Sompo Group forerunners Sompo Japan Insurance Inc. and NIPPONKOA Insurance Co., Ltd., joined to establish NKSJ Holdings, Inc., in April 2010.

Sustaining Growth

With a range of innovations and economic crises accelerating social change, the Sompo Group has been transforming itself into a corporate entity that grows by helping solve social issues.

The domestic P&C insurance business is developing in step with social trends. In response to the decrease in car ownership in Japan as its population declines and ages, we are facilitating the adoption of autonomous cars and promoting development in the mobility field. For example, we have recently entered the car sharing and private car leasing businesses.

In the overseas insurance business, 2017 saw the Group lay the foundations for global growth by completing its largest-ever M&A, which entailed the acquisition of Endurance (now Sompo International).

Meanwhile, in the domestic life insurance business, Sompo Japan Himawari Life Insurance Co., Ltd., and NIPPONKOA Life Insurance Company, Limited, merged to establish NKSJ Himawari Life Insurance, Inc., in 2011. Responsible for the Group’s domestic life insurance business, the merged company has stepped up the pace of growth by further strengthening management foundations. At the same time, the company is transforming into a health support enterprise that rests on the twin pillars of Insurhealth® and health and productivity management.^*

The Group entered the nursing care business in earnest with the acquisitions of the major nursing care provider Watami no Kaigo Co., Ltd., in 2015 and Message Co., Ltd., in 2016. In 2018, the Group integrated its four nursing care operating companies to create Sompo Care Inc. We now offer a comprehensive lineup of nursing care services that cater to the specific needs of customers in their local communities.

In accordance with our digital strategies, we established SOMPO Digital Labs in Tokyo and Silicon Valley in 2016 and in Tel Aviv in 2017. Anticipating the growing importance of big data utilization, the Group established Palantir Technologies Japan K.K. jointly with Palantir Technologies Inc. in 2019. Palantir Japan has already begun to provide many different types of companies and organizations with data solutions.

The Group has also been steadily strengthening its management structure. We introduced a Business Owner system in 2016 and a Group Chief Officer (CxO) system in the following year. Moreover, in 2019 we transitioned from a Company with an Audit & Supervisory Board structure to a Company with Committees structure.

^*Registered trademark of the incorporated nonprofit organization Workshop for the Management of Health on Company and Employee

Realizing “A Theme Park for Security,Health & Wellbeing”

Through the aforementioned initiatives, the Sompo Group has grown by anticipating dramatic changes in external conditions and repeatedly merging and integrating with an array of companies that are focused on security, health, and wellbeing but which have different backgrounds and cultures from those of the Group. Of course, all aspects of the future cannot be foreseen. The emergence of COVID-19 and the resulting dramatic changes in conditions are one example of such uncertainty. Nonetheless, even in this era of volatility, uncertainty, complexity, and ambiguity (VUCA), we will realize our vision of “A Theme Park for Security, Health & Wellbeing” by transforming each business and strengthening collaboration among businesses, with solid financial foundations and steady profit generation providing a base for these initiatives.