Latest news with #TokioMarine
Reuters
27-05-2025
- Business
- Reuters
Tokio Marine launches green unit, eyes $1 billion revenues by 2030
LONDON, May 28 (Reuters) - Japanese insurer Tokio Marine (8766.T), opens new tab has set up a unit to insure activities linked to the low-carbon transition such as green hydrogen, shipping and cement and is targeting $1 billion in revenues by the end of the decade, its chair told Reuters. The new unit, Tokio Marine GX (TMGX), will provide advisory and risk transfer services to companies across a range of sectors looking to decarbonise, and build on the existing work of its GCube renewable energy team, Fraser McLachlan said. TMGX will offer up to $500 million in cover on any single risk and is targeting at least a 10% share of the global premium income market in 2030, estimated at around $10 billion, he said. While some peers had already begun to write more transition-linked business, most had done so using existing sectoral teams rather than creating a dedicated unit, he said. "We're going to rip up the rule-card a little bit here," McLachlan said. "We're going to look at some new technologies, we're going to look at more sophisticated ways of being able to risk transfer business," such as offering insurance for tax credits and surety guarantees. Launching with existing GCube headcount of around 50 and revenue of around $200 million, both would likely double over the next couple of years, he said. Parent Tokio Marine is the largest property and casualty insurer in Japan with a market value of around $70 billion. Among the new technologies TMGX would look to cover include small and middle market nuclear, hydrogen, fuel cells, new solar technologies including floating solar and electric vehicles, he said. "There's a lot of sectors that really haven't been served by the insurance space," McLachlan said. Another area ripe for extra help was the market for tax credit insurance, where businesses get cover in case they are unable to access the credits as planned, thereby lowering their risk to bank lenders and the interest rate on borrowing. "It's a win-win. Lenders love it as it transfers their risk; we like it, we're getting a premium for a risk we're comfortable with; and it allows the project to be financed at more equitable terms." The company could also look to strike deals with managing general agents, intermediaries given authority by the insurer to write business in their name, saving them the time and expense of building out a team. "It's a pretty quick win... it allows you instant access to a market," McLachlan said. Finding more innovative ways to finance the risks associated with the transition was critical if the world is to hit its climate goals. "Unless people start coming to the table with more creative insurance solutions ... we're going to see a lot of these projects stall," he said.
Japan Times
21-05-2025
- Automotive
- Japan Times
All three major Japanese nonlife insurers log record net profits
All three major Japanese nonlife insurance companies posted record consolidated net profits for the second straight year in fiscal 2024, which ended in March, driven by gains from the sale of cross-held shares, according to their earnings reports. Net profit went up some 1.5 times to ¥1,055.2 billion at Tokio Marine Holdings, about 1.9 times to ¥691.6 billion at MS&AD Insurance Group Holdings and 1.7% to ¥422.9 billion at Sompo Holdings. The companies plan to sell all of their cross-shareholdings, which are said to have become a hotbed of improper business practices, after fraudulent advance adjustments of premium rates for corporations were found. For fiscal 2024, gains from the sale of cross-shareholdings reached ¥822.1 billion at Tokio Marine, ¥530.6 billion at MS&AD and ¥298.6 billion at Sompo Holdings. Net premium income increased at all the companies, reflecting hikes of car and fire insurance premium rates. The yen's weakening also helped their overseas operations. Still, automobile insurance products are facing headwinds due to an increase in repair costs amid inflation. "We will consider reviewing premium rates before January, the month they are revised annually," Tokio Marine Group Chief Financial Officer Kenji Okada said during a news conference Tuesday. For fiscal 2025, net premium income is forecast to rise at the three firms, while net profit is predicted to shrink, due to decreases in their gains from the sale of cross-shareholdings.
Bloomberg
20-05-2025
- Business
- Bloomberg
Japan's Big Non-Life Insurers Plan to Sell Cross Shareholdings
Japan's three major casualty insurers plan to sell a total of about ¥1.37 trillion ($9.5 billion) of cross-held shares in the fiscal year started April in a push to reduce strategic holdings in line with government policy. Tokio Marine Holdings Inc. plans to sell plans to sell ¥600 billion of shares, MS&AD Insurance Group Holdings Inc. aims to offload ¥573 billion and Sompo Holdings Inc. targets ¥200 billion, according company announcements on Tuesday.
Japan Times
31-03-2025
- Business
- Japan Times
Mitsui Sumitomo Insurance to merge with Aioi Nissay Dowa
Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance plan to merge in April 2027, their parent, MS&AD Insurance Group Holdings, said Friday. The merger will create the biggest nonlife insurer in Japan, overtaking current industry leader Tokio Marine & Nichido Fire Insurance. The move is aimed at making operations more efficient and boosting profitability as Japanese nonlife insurers face the challenges of a shrinking domestic market due to societal aging and increasing benefit payments because of a series of large-scale natural disasters. The merger between Mitsui Sumitomo Insurance and Aioi Nissay Dowa will consolidate the Japanese nonlife insurance industry into three major firms, also including Tokio Marine and Sompo Japan Insurance, compared with over 10 in the late 1990s. Mitsui Sumitomo Insurance and Aioi Nissay Dowa had ¥2.99 trillion ($20 billion) in premium revenue together in the year ended in March last year, exceeding Tokio Marine at ¥2.42 trillion and Sompo Japan at ¥2.18 trillion. Mitsui Sumitomo Insurance, Aioi Insurance and Nissay Dowa General Insurance combined operations under the holding company, MS&AD, in April 2010. Aioi and Nissay Dowa merged that October to become Aioi Nissay Dowa. Mitsui Sumitomo Insurance's forte is with corporate clients while Aioi Nissay Dowa focuses more on individual clients and auto insurance.
