Tokio Marine HCC to buy renewable energy MGA GCube

Specialist insurer Tokio Marine HCC has signed a purchase agreement to acquire specialist renewable energy managing general agent (MGA) GCube Underwriting.

GCube covers wind, solar, bio, hydro, wave and tidal projects across the globe. The business writes global property and liability cover for renewable energy construction and operational risks in 40 countries from its offices based in London, Amsterdam, New York and Newport Beach, California.

The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close in the second quarter of 2020.

"This strategic investment underlines our commitment to the renewable energy insurance market and our desire to actively address the issues around sustainability, helping us move towards a safe, secure and sustainable future," said Barry Cook, chief executive officer of Tokio Marine HCC – International Group. "GCube also adds significant weight to our existing classes of specialty insurance and is in line with our strategy of acquiring businesses which possess real market-leading expertise, complement our existing portfolio and offer opportunities for growth and diversification."

Susan Rivera, Tokio Marine HCC’s chief executive officer, added: "We are pleased to acquire this outstanding underwriting organisation and welcome the passion the GCube team of market-leading renewable energy professionals brings to the development of climate-friendly business models."

Fraser McLachlan, GCube’s chief executive officer, said: "We are delighted to become part of the Tokio Marine HCC family. The group’s corporate social responsibility efforts, financial strength and global reach leave us ideally positioned to continue our expansion in one of the most vibrant and evolving sectors of the market."

Simon Button, chief underwriting officer – London Market division of Tokio Marine HCC – International Group, concluded: “We have worked closely with the GCube team for a number of years, and their addition to our group is a natural extension of this relationship. The renewable market offers significant opportunities for growth, and GCube’s 25 years’ experience as a global leader clearly positions Tokio Marine HCC as an important trading and innovation partner in this emerging field.”