Sompo can tune global reinsurance cover in time to boost FY2023 result
Japan-based global insurer Sompo Holdings is on track to coordinate its global reinsurance coverage in time to pad delivery of its fiscal-year 2023 financial targets with group-level synergies, officials have indicated.
The current piecemeal approach to reinsurance purchase "is not really optimal" and has motivated investment in a reinsurance platform intended to coordinate actions, Group COO Mikio Okumura admitted during the group's Q1 performance update for analysts in concert with other top company officials.
“The reinsurance platform I think is a real opportunity for us, not only in how we maximize the net retention based on group appetite, but how we have a consistent appetite across all geographies,” the chief executive of Sompo's global P&C unit Sompo International, Jim Shea (pictured), added for the conference.
“The other benefit I see on the reinsurance is how we manage our reinsurance partners and how we manage our distribution partners on a global basis and so we are seen in the market as one organization and not two,” Shea said. “That is a tremendous opportunity for the group over the medium- to long-term.”
No precise timeline was given save to hint at 2023 impact. Okumura cited ongoing efforts from a working group with admission that progress is “probably the next stage” once a platform is in place.
Coordinated group reinsurance was listed in the presentation alongside investments and approaches to multi-national businesses as a “first step” towards “generation of conglomerate premium” designed “to enforce the achievability of the FY 2023 business target.”
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