Mitsui Sumitomo Insurance Co. Ltd. (MSI) has a solid business franchise with the third largest market share among Japanese non-life insurers in terms of net parent-only premiums. MSI's strong market position is backed by the well-recognized brand names of the Mitsui and Sumitomo groups, as well as its relationship with the groups. However, MSI's business franchise and customer base was impaired due to a two-week business suspension order imposed in July 2006 by the FSA following inappropriate non-payment of claims. Meanwhile, MSI is aggressively promoting diversification into life insurance business and overseas insurance markets in an effort to dissolve over-reliance on its domestic non-life insurance operations, which show limited growth potential. Although administrative penalties will have some negative effect, MSI
