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| April 26, 2002 |
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| Merger of Asset Management Subsidiaries |
Mitsui Mutual Life Insurance Company
Sumitomo Life Insurance Company
Mitsui Sumitomo Insurance Co.,Ltd.
Sumitomo Mitsui Banking Corporation |
| Tokyo, April 26, 2002 Mitsui Mutual Life Insurance Company ("Mitsui Life"),
Sumitomo Life Insurance Company ("Sumitomo Life"), Mitsui Sumitomo Insurance Co.,
Ltd ("MSI") and Sumitomo Mitsui Banking Corporation ("SMBC") announced today
that they had reached a basic agreement on the merger of their asset management
subsidiaries?MITSUI LIFE GLOBAL ASSET MANAGEMENT CO., LTD. ("MLG"),
Sumitomo Life Investment Co., Ltd. ("SLI"), Sumisei Global Investment Trust
Management Co., Ltd. ("SGT"), MITSUI SUMITOMO INSURANCE ASSET
MANAGEMENT CO., LTD. ("MSIAM"), and SAKURA INVESTMENT
MANAGEMENT CO., LTD. ("SAMCO") - subject to approval from relevant
governmental authorities. The merger was a result of an ongoing study and discussion
carried out by Mitsui Life, Sumitomo Life, MSI and SMBC on reorganization of asset
management business within the framework of the "Implementation of Comprehensive
Alliance" announced on November 22, 2001. |
| In Japan, the asset management market is expected to expand. However fierce
competition within the industry will intensify. As a result, Japanese asset
management companies must strengthen their investment management
capabilities and enhance company management. In order to cope with changes in
the field of asset management taking place in Japan, Mitsui Life, Sumitomo Life,
MSI and SMBC decided to integrate their asset management subsidiaries. By
leveraging the strengths of these subsidiaries, the new company will endeavor to
enhance its investment management capability and improve greatly its efficiency.
The new company will aim at becoming a premier asset management company,
offering world-class service to all of its retail and institutional clients. |
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II. New company's services |
| A. | Improve investment management capability and provide a strong line-up of investment management products | | | The new company will have expanded research function and active investment
management capabilities as a result of the merger. It will also leverage the
merger effect to proactively provide passive investment management and
alternative investment management products. Building on the merging
companies' asset management expertise in insurance, pension funds,
investment trusts, etc., the new company will display its commitment to become
a full-line asset management company which is capable of meeting a diverse
range of needs from every customer. All current investment management
services will be provided in a smooth transition by the new company to
maintain consistency of management style. |
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B. |
Improve customer relationship utilizing a broad range of customer interfaces | | | The new company will gain an extremely wide range of methods to improve
communication and customer relations. These include not only merging
companies' own sales networks, but also call centers, on-line interfaces, and
channels of banks and life/non-life insurance companies, allowing access in a
manner which can suite the needs and desires of various types of customers. |
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C. |
Improve risk management and customer reporting | | | Risk management and back-office function are increasingly important factors for superior asset management. The new company will endeavor to secure
higher quality in risk management and customer reporting. A substantial
amount of investment in developing and managing computer system is required
and this challenge is a heavy burden faced by Japanese asset management
companies. The integration of the systems will significantly reduce business
administration costs, enabling the new company to proactively devote more of
its resources in advanced computer system, with the goal to full transparency in
asset management and better customer reporting. |
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III. Schedule and other matters |
| The merger is targeted for December, 2002. Details of the new company such as
the name, address , and personnel will be available at a later date.
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For reference: Outline of the five subsidiaries
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Total Assets under management of the new company ( as of March 31, 2002 )
(1) Investment Advisory : ¥12,450 billion (The largest)
(2) Investment Trust : ¥ 700 billion (13th largest) |
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