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Incoming Tokio Marine CEO eyes increased overseas M&A activity

22nd January 2019 - Author: Charlie Wood

The newly promoted, incoming Chief Executive Officer of Tokio Marine Holdings has indicated that he intends to further diversify the company’s geographic footprint via oversees mergers and acquisitions (M&A), according to reports by Reuters.

tokio-marine-hcc-logoJapanese re/insurers, of which Tokio Marine is one of the most acquisitive, have become increasingly reliant on foreign M&A deals in recent years due to an ageing population, low interest rates at home and heightened exposure to natural disasters.

Tokio Marine has already spent $15 billion in the last decade buying other insurance businesses, including HCC Insurance Holdings for $7.5 billion in 2015, Delphi Financial Group for $2.7 billion in 2012 and Philadelphia Consolidated Holding for $4.7 billion in 2008.

“Valuations of companies, or deal prices, have become expensive given excess of [global] money. But if there is a really good company and a good chance, we would like to try,” Satoru Komiya told a news conference on Monday.

Reuters reports that for the six months ended in September 2018, the company’s domestic property and casualty business suffered losses after booking hefty natural disaster insurance payouts, while its overseas business made a steep profit increase.

Komiya’s promotion to the CEO position is effective June 2019 and was announced by the company’s Board of Directors alongside a number of other senior appointments.

He replaces Tsuyoshi Nagano, who has served since 1975 and is set to fill the company’s Chairman of the Board role, which will become vacant following the departure of Shuzo Sumi.

In addition, Tokio Marine’s current Senior Managing Executive Officer, Shinichi Hirose, will become the company’s Director, stepping into a role vacated by Toshifumi Kitazawa.

The Board of Directors also indicated that he is scheduled to be appointed as President & CEO of Tokio Marine & Nichido Fire Insurance on April 1.

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