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In theory, earthquakes are not covered by fire insurance policies, but insurers felt morally obliged to pay in the wake of losses that were far worse than expected. Insurers’ financial positions rapidly deteriorated, compounded by the financial crisis associated with the postwar depression. Fuso Marine Insurance had the additional misfortune to lose its chairman, who died from injuries suffered in the earthquake.
Hirao, who took over as chairman, was one of the heavyweights of the non- life insurance industry with experience as a director of two competing insurance companies. He likely had the option of merging Fuso Marine with another company as management difficulties intensified, but this could not have been further from his mind. A believer in Buddhist social synergism, his main concern was the founder’s plans to sell his own shares in Fuso Marine to settle some debts.
Hirao believed that the three companies that he was involved with could each maintain their independence and cooperate with each other for the benefit of Japan’s non- life insurance industry. He was seeking a powerful backer among the shareholders who would take over the founders’ shares to stabilize Fuso Marine’s business viability.
The only candidate was the highly respected House of Sumitomo—whose head office was one of Fuso Marine’s leading shareholders. Hirao promptly met with Masatune Ogura, a director of Fuso Marine and executive director of Sumitomo Goshi Kaisya. Ogura agreed to help, moved by Hirao’s impassioned plea to support the insurance business, which was “essential to improving the welfare of the nation and of benefit to both state and society.”
Sumitomo Goshi Kaisya gradually acquired more shares in Fuso Marine Insurance and became the top shareholder in 1927. In 1930, Ogura visited Hirao to offer Sumitomo’s commitment to “assisting Fuso Marine to the best of its ability.” Thus Fuso Marine made a new start as a de facto Sumitomo Group insurance company. |
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| A Fuso Marine marketing pamphlet. The company sought to grow its business by switching its domestic sales mainstay from marine insurance to fire insurance products. |
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