Tokio Marine sells US subsidiary TMPI in risk diversification move
Japanese property/casualty insurer Tokio Marine Holdings has decided to sell Tokio Marine Pacific Insurance (TMPI), its subsidiary in Guam, US, in response to “changes in market conditions”.
The insurer has entered into a definitive agreement with Calvo Enterprises for the sale of Tokio Marine Pacific Insurance. The transaction is subject to regulatory approvals and is expected to close in the second half of fiscal year 2023.
TMPI specialises in underwriting medical and property/casualty insurance in Guam and the Northern Mariana Islands through its managing general agents . In fiscal year 2022, TMPI recorded premiums written of approximately $176 million (approx. JPY 23.4 billion) and has been gradually expanding its business.
“Regardless, as part of our capital efficiency improvement and risk diversification efforts, it was decided to divest TMPI for further portfolio optimisation,” Tokio Marine said. “We have agreed its sale to Calvo, a TMPI managing general agent that has shown a keen interest in TMPI's business portfolio.”
Tokio Marine Holdings does not expect the sale of TMPI to have a material impact on its overall business performance.
“We will continuously review our business portfolio in a timely and appropriate manner to ensure strategic utilisation of capital and effective risk control,” it noted.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
