Tokio Millennium Re takes big step towards diversification
Tokio Millennium Re (TMR) has completed its re-domestication to Switzerland from Bermuda. The move represents the start of a wider strategy of growth and diversification for the company in Europe, the US and Asia.
Tatsuhiko Hoshina, TMR’s chief executive officer, has previously outlined ambitious growth plans that also diversify the business and ensure its capital is used in the most efficient way possible.
The shift to Zurich means the company can now proceed with its other stated goal of opening a branch office in the US in 2014.
In September, the group also revealed plans to broaden its reinsurance services to Asian clients. These services are to be offered by the Group’s UK operation, Tokio Millennium Re (UK) from January 1 2014 for renewals of the current Asian portfolio written by Tokio Marine Global Re Asia.
The expansion on all fronts will increasingly change the emphasis of its portfolio and move it away from its roots as a monoline property-catastrophe business.
Speaking in an interview with Intelligent Insurer in Monte Carlo, Hoshina said its presence on the ground in both Europe and the US will bring it closer to clients allowing it to benefit from more opportunities for diversification and growth.
“The move will allow us to provide better service, in terms of our products, into the European market. We will now also look at the opportunity to form a branch office in the US,” he said. “That represents a portfolio change for us compared with where we first started as a monoline cat player. These things will give us a closer presence on the ground to clients and allow us to see opportunities as a result.”
Today’s specific announcement follows approval for the move from the Swiss Financial Market Supervisory Authority (FINMA). The company has been registered as Tokio Millennium Re AG.
“We are excited about our re-domestication to Switzerland. This move is an essential step in achieving TMR Group’s long term business plan for further expansion, growth and diversity and maximising capital efficiency,” Hoshina said in response to the approval.
Hoshina will remain chief executive of the group based in Bermuda. Edwin Jordan has been appointed head of the Bermuda branch. As part of the re-domestication, Stephan Ruoff has been appointed group chief underwriting officer, and will also serve as head of the Europe operation from Zurich.
