Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Companies

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

Japan Post Insurance says 1,400 improper-sales cases broke law

share with twitter share with LinkedIn share with facebook
09/30/2019 | 07:18am EDT

TOKYO (Reuters) - Japan Post Insurance Co Ltd said on Monday it discovered 6,327 cases of improper sales in a previously flagged misconduct matter that is still under investigation and that 1,400 cases among them are suspected of violating the law.

This is the first time the unit of Japan Post Holdings has said some of the cases have broken the law.

Another group company, Japan Post Bank Co Ltd, separately said earlier this month it had improperly sold investment trust products to elderly customers in about 19,500 cases.

The misconduct cases have rocked the Japan Post Group and some of their affiliates, pummelling their shares. Japan Post Insurance has suspended sales of insurance policies.

The admissions cast a shadow over the government's plan to sell $10 billion worth of its shares in parent Japan Post Holdings to pay for reconstruction in areas hit by the 2011 earthquake and tsunami.

Japan Post Insurance had said in August it possibly sold a total of about 183,000 insurance policies that could have been disadvantageous to policy holders, over the five years through fiscal 2018.

It said on Monday most of the cases that fell foul of the law involved false explanations provided to customers. The company has so far scrutinised about 68,020 cases, accounting for about 37% of total misconduct, it said, releasing an interim report on the investigation.

"I will lead from the front to restore our trust from customers," Mitsuhiko Uehira, president of Japan Post Insurance, said at a news conference. He, Masatsugu Nagato, chief executive at Japan Post Holdings, and other senior executives who attended the briefing, bowed in apology.

"We will continue to investigate with the view that even a single case of misconduct cannot be tolerated," Uehira said.

Once their internal investigation is concluded, Japan Post Insurance will consider imposing punishments such as disqualifying insurance agents who violated law or internal rules, the company said.

While it had aimed to restart selling insurance policies in October, the company postponed it to January 2020.

The Financial Services Agency's (FSA) division that monitors Japan Post Group declined to comment as the investigation is not over.

Japan Post Insurance shares have slumped about 20% since July, while Japan Post Holdings and Japan Post Bank shares have fallen 16% and 6%, respectively, over the same period.

The group's U.S. affiliate Aflac's shares have also fallen since the news of the misconduct emerged on worries about its sales in Japan.

(Reporting by Takashi Umekawa and Takaya Yamaguchi; Editing by Muralikumar Anantharaman)

By Takashi Umekawa and Takaya Yamaguchi

Stocks mentioned in the article
ChangeLast1st jan.
AT HOME GROUP INC. -3.38% 16.125 Delayed Quote.201.09%
JAPAN POST BANK CO.,LTD. 1.57% 841 End-of-day quote.-19.90%
JAPAN POST HOLDINGS CO., LTD. 0.35% 726.4 End-of-day quote.-29.20%
JAPAN POST INSURANCE CO., LTD. -1.18% 1679 End-of-day quote.-9.83%
JUST GROUP PLC -0.72% 41.34 Delayed Quote.-47.24%
LETS HOLDINGS GROUP CO., LTD. -1.70% 8.69 End-of-day quote.43.87%
LOOK HOLDINGS INCORPORATED 0.42% 964 End-of-day quote.-23.00%
THE LEAD CO., INC. -0.26% 384 End-of-day quote.-1.54%
WILL GROUP, INC. -0.12% 808 End-of-day quote.-35.46%
share with twitter share with LinkedIn share with facebook
Latest news "Companies"
10:09aGEOVAX LABS : to Report Third Quarter 2020 Financial Results on Thursday, November 5, 2020 and Provide Corporate Update
10:09aGeoVax to Report Third Quarter 2020 Financial Results on Thursday, November 5, 2020 and Provide Corporate Update
10:09aRAYTHEON STOCK ALERT : Nationally Recognized Shareholder Rights Litigation Firm Labaton Sucharow Announces Investigation of Raytheon Technologies Corp. (NYSE: RTX) Concerning Department of Justice Criminal Probe
10:07aALPHABET : Waymo releases Phoenix area self-driving car incident score card
10:07aNIOCAN : amends its $2.345 Million Secured Debenture to extend the maturity date
10:06aKIMBALL INTERNATIONAL INC : Submission of Matters to a Vote of Security Holders, Financial Statements and Exhibits (form 8-K)
10:06aTEREX CORP : Results of Operations and Financial Condition, Financial Statements and Exhibits (form 8-K)
10:06aNEXTECH AR : CEO Evan Gappelberg to Webcast Live at VirtualInvestorConferences.com on November 5th
10:05aMONEYGRAM INTERNATIONAL : Q3 2020 MoneyGram International Earnings Presentation
10:05aSETANTA ALTERNATYWNA SPÓLKA INWESTYCYJNA SPÓLKA AKCYJNA : All in! Games partners with The Farm 51 to publish Chernobylite!
Latest news "Companies"