131203MSAD_e
20/26 Reorganization by Function (1) The Goals
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00:15:47.6
As we announced on January 31 and September 27 this year, the Group elected to proceed with reorganization by function in the second phase of the business integration. Through the reorganization, the Group will have two core non-life insurance subsidiaries that will clarify their respective business concepts, a direct non-life insurance subsidiary, and two life insurance subsidiaries having different business models. The Group will further develop a system that will enable it to respond flexibly to diversifying customer needs. Compared with a merger, reorganization by function will minimize the energy within the Group that is spent on the integration of corporate cultures and products and services, something that is not always reflected in numbers. We believe that if the five insurance companies ? each with their own distinctive features ? continue to grow in broader and more diversified markets, the Group will be able to achieve growth and streamlining more speedily even if the business environment becomes more and more challenging. In IT system integration, which is expected to have the largest cost reduction effect, a common platform has already been built and has started to operate in earnest this fiscal year. The first base enabling the Group to achieve a breakthrough has been established. In October, we strengthened the holding company and the Group governance system. The holding company will take the lead in steadily achieving sustainable growth and improvements in corporate value by securing stable profits in existing business fields and accelerating strategic investments in growth fields.
00:17:51.5
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