Japan Post Holdings' Sales Drop 4.8 Pct in April-Sept.
Newsfrom JapanEconomy Politics
Tokyo, Nov. 14 (Jiji Press)--Japan Post Holdings Co. <6178> said Thursday its group revenue in April-September dropped 4.8 pct from a year earlier to 5,969.3 billion yen.
The fall was chiefly caused by the Japan Post Insurance Co. <7181> unit's inappropriate insurance sales practices and a resulting suspension in the promotion of insurance products since mid-July.
The number of new insurance contracts declined 30,000 to 580,000 in the first half of the current business year through next March.
After the sales promotion halt, the number of new insurance deals plunged to about 10 pct of the year-before level, a senior Japan Post Insurance official said.
Meanwhile, Japan Post Holdings' consolidated net profit rose 5.8 pct to 236.5 billion yen, as labor costs at the Japan Post Co. unit, which sells the so-called Kanpo insurance policies at post offices, decreased in line with the voluntary sales restriction.
[Copyright The Jiji Press, Ltd.]