Sompo likes nat cat, could make its approach from reinsurance side

Japan-based global insurer  Sompo currently prefers to take on global property catastrophe exposure as a reinsurer than a primary carrier, the chief executive of Sompo's global P&C unit Sompo International, Jim Shea (Pictured), has said.

“Our return and performance with respect to cat is significantly better on the reinsurance side than on insurance and as we look over the market and where we will deploy that capital, it will be more toward the reinsurance side of the business,” Shea told analysts during an investor conference.

Sompo has set itself up for growth from its foreign unit, having recently transferred ¥200 billion ($1.44 billion) to Sompo International for investments and organic growth.

“We are going to look at it very carefully,” Group COO Mikio Okumura said of possible increases in nat cat exposure. “The decision to do it or not will be finalised after the discussion with Jim, but to be flexible, we need some capital allocated.”

Terms are looking strong for the reinsurance renewals. “Dozens of percent of rate increase is almost for sure,” Okumura said.

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