10 August 2016Insurance

P&C subsidiary boosts Tokio Marine’s quarterly profits

Tokio Tokio Marine & Nichido Fire Insurance Co., a property/casualty subsidiary of Tokio Marine, drove the carrier’s results in the period April to June, which is the company’s accounting first quarter 2016.

The unit, which is the main contributor to Tokio Marine’s profit, improved its net attributable income by 33.3 percent year-on-year to ¥92.0 billion (£695.6 million) in the company’s first accounting quarter of 2016.

Tokio Marine & Nichido Fire Insurance Co. increased underwriting profit by 16.3 percent to ¥36.4 billion over the period. Among the drivers for this development were a decrease in provisions for reserves for foreign currency denominated outstanding claims due to the appreciation of the yen, a decrease in net provisions mainly in auto group and lower personnel expenses.

Tokio Marine’s overseas subsidiaries’ attributable net income dropped over the period by 17.2 percent to ¥26.4 billion.

Overall, Tokio Marine group posted an 8.7 percent year-over-year increase in attributable net income to ¥97.2 billion.

The company attributed its improvement in net profit to a lowering of the provision rate for catastrophe loss reserves and an increase in gains on sales of securities at Tokio Marine & Nichido Fire Insurance, despite an increase in net incurred losses relating to natural catastrophes at domestic non-life.

The company’s net premiums written increased by 6.3 percent year-on-year to ¥894.4 billion, mainly driven by the consolidation of HCC Insurance and despite the appreciation of the yen.

Tokio Marine in June 2015 revealed that it would acquire US speciality insurer HCC Insurance for $7.5 billion. The acquisition was completed in October of the same year.

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10 June 2015   Tokio Marine Holdings has revealed it will acquire US speciality insurer HCC Insurance for $7.5 billion.