Tokio Marine HCC, a member of Tokio Marine Group, has announced the signing of a purchase agreement to acquire renewable energy risk specialist MGA, GCube.
Specialist renewable energy insurer GCube is one of the largest underwriters of renewable energy, covering wind, solar, bio, hydro, wave, and tidal projects across the globe.
The agreement will see Tokio Marine HCC acquire a writer of global property and liability cover for renewable energy construction and operational risks in 40 countries. Currently, the firm employs around 50 people and is headquartered in London, with offices in Amsterdam, New York, and California.
The Chief Executive Officer (CEO) of Tokio Marine HCC, Susan Rivera, commented: “We are pleased to acquire this outstanding underwriting organization and welcome the passion the GCube team of market-leading renewable energy professionals brings to the development of climate-friendly business models.”
Barry Cook, CEO of Tokio Marine HCC – International Group, added: “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. 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.”
The transaction is expected to close in the second-quarter of 2020, and remains subject to regulatory approval and other customary closing conditions.
Fraser McLachlan, GCube’s CEO, 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.”
While Simon Button, Chief Underwriting Officer (CUO), London Market unit of Tokio Marine HCC – International Group, added: “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.”