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In 1932, Ogura (then director general of Sumitomo Goshi Kaisya) replaced Hirao as chairman of Fuso Marine. Despite the continuing severity of the business environment, internal management reforms led by ex- Sumitomo senior managing director Kuichi Koyama rapidly put the company’s management structure in place. Company rules similar to those of the Sumitomo were introduced to delineate the chain of command, and becoming part of a zaibatsu group had many positive effects, such as attracting recruits from the best universities.
Business also began to improve, especially in the fire insurance sector. Fuso Marine recorded phenomenal growth in the decade from 1930 to 1940, with total insurance premium income increasing almost sixfold and total assets growing by 3.3 times. Although Fuso Marine started out as a marine insurance company, by 1940 fire insurance accounted for 60% of its total insurance premiums.
Fuso Marine changed its name to Sumitomo Marine and Fire Insurance Co., Ltd. in April 1940 to position itself as a directly- affiliated Sumitomo company in both name and substance. When the corporate name was changed, Chairman Ogura gave a speech to all employees about the Sumitomo spirit and business philosophy—the prime importance of integrity and sound management, and urged them to “cultivate virtues worthy of being a Sumitomo employee.” |
