Tokio Marine exits reinsurance as profitability slumps

31-10-2018

Tokio Marine exits reinsurance as profitability slumps

YBoiko / istockphoto.com

Challenging market conditions and a renewed focus on building its primary insurance business have resulted in Tokio Marine Holdings taking the decision to divest its reinsurance operations in a $1.5 billion sale to specialist Bermuda reinsurer RenaissanceRe Holdings, which is scaling up its business.

Tokio Marine is selling 100 percent of Tokio Millennium Re AG (TMR) and TMR UK - reinsurance businesses, both owned by Tokio Marine & Nichido Fire Insurance - to RenRe.

TMR (UK) has a focus on reinsurance runoff and was founded in 1990. TMR was established in 2000 to write overseas reinsurance risks. The contribution to group profits from TMR and TMR(UK) has diminished over the last 10 years, and the subsidiaries had also broadened their business written into non-catastrophe exposed classes.

In 2017 TMR had a combined ratio of 116.2 percent, up from 95.8 percent year-on-year. TMR UK’s 2017 combined ratio was 177.5 percent, up from 111.5 percent in 2016.


Tokio Marine, TMR, RenRe, M&A, Insurance, Reinsurance, Kevin O’Donnell, Stephan Ruoff, Bermuda, Japan, North America

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