Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, May 11, 2012, from 9:50 a.m. to 10:00 a.m.)

[Opening Remarks by Minister Jimi]

Good morning.

Today, I do not have anything particular to announce.

[Questions & Answers]

Q.

Japan Post Insurance has given up on moving into the cancer insurance market. Could you comment on that?

A.

I understand that Japan Post Group will consider how to improve its services, including whether to develop cancer insurance products that you mentioned. As I said at my previous press conference and repeatedly stated in the Diet, the recent legal amendment requires that equal competitive terms be ensured for the two postal financial institutions and other financial institutions, as you know. Neither the United States nor the EU has made any suggestions regarding the organization of the two postal financial institutions, such as whether or not these institutions should be privatized. Their stance is neutral in that respect. This matter is up to the Japanese government to decide, as Japan has the right of self-government, so they will not intervene. When I met with U.S. Treasury Undersecretary for International Affairs Brainard and the U.S. Ambassador to Japan and when the Japanese envoy met with his U.S. and EU counterparts in Geneva, the United States and the EU assured that they remain neutral in that respect. Following the legal amendment, they have requested that equal competitive terms be ensured for the two postal financial institutions and foreign institutions. That concerns the issue of the principle of equal treatment of domestic and foreign companies, and we have repeatedly been reminded of it. As I mentioned previously, three requirements will remain after the disposal of half of government-held shares. Mr. Nishimuro, a man of excellent judgment, has been appointed as chairman of the postal privatization committee. I believe that the postal reform does not contravene the basic spirit of international commitments such as the WTO agreement.

The WTO agreement has been very important for Japan in pursuing free trade in the postwar era, as it is an island country which is poor in natural resources and depends on exports of processed products. As the Prime Minister has repeatedly stated in the Diet in relation to this matter, we will reiterate Japan's intention to ensure consistency with international commitments and seek relevant countries' understanding.

Q.

May I take it that you support the management decision to give up on moving into the cancer insurance market?

A.

That is a matter of managerial judgment, so it would not be appropriate for me to comment in light of the purpose of the amended law. That is a matter to be judged by the company's managers at their discretion. All the same, let me mention that at yesterday's meeting of postmasters sponsored by the Study Group on Postal Policy, Japan Post President Saito said that at a time when a certain American life insurance company has a market share of around 75% and the largest Japanese life insurance company is struggling in the market, it would be difficult for Japan Post Insurance to provide cancer insurance at the low price offered to the Japanese people by the American company. That is a managerial judgment, and our position is that we respect managers' discretion.

Q.

In relation to the postal businesses, President Saito said in an interview that Japan Post will participate in syndicated loan projects led by private financial institutions. What is your view on Japan Post's cooperative relationship with private financial institutions, although you are in a sensitive position as the minister for postal reform and financial services?

A.

Basically, it is necessary to hear the opinions of the postal privatization committee, as I have repeatedly mentioned.

(End)