JA Kyosai (Zenkyoren) has established a reinsurance subsidiary, Zenkyoren Re Limited, in the Bailiwick of Guernsey, a Crown dependency of the United Kingdom.
The new Zenkyoren Re structure, which has commenced its business operations, will be operated by Aon Insurance Managers acting on behalf of Zenkyoren.
In its announcement, Zenkyoren noted that risks, especially from natural disasters, have grown increasingly complex in recent years due to climate change and globalisation.
The firm explained that many cooperatives and mutual insurers worldwide face structural challenges from risk concentration in specific regions or industries.
Zenkyoren observed that it is no exception, with its natural disaster exposure heavily weighted toward earthquakes in Japan.
To help address this challenge, and taking the opportunity of 2025 being designated the “International Year of Cooperatives,” Zenkyoren has established Zenkyoren Re.
Through this new entity, Zenkyoren aims to support the transfer of risk by International Cooperative and Mutual Insurance Federation (ICMIF) member organisations and others, as well as to accept overseas natural catastrophe risks itself, thereby promoting more diversified risk retention at the Zenkyoren Group level, including through the new reinsurance subsidiary.
“Zenkyoren Re will begin by underwriting overseas natural catastrophe risks from ICMIF member organisations and others on a small scale and will gradually expand the size of its portfolio. Through this process, the company aims to achieve stable, medium- to long-term reinsurance underwriting,” Zenkyoren said in the announcement.
The firm continued, “By positioning ICMIF member organisations and other cooperative entities around the world as its main ceding companies (reinsurance clients), the subsidiary will also work to further strengthen collaboration with the global cooperative network.
“From the perspective of ensuring stable asset management for the subsidiary, investments will also be made in instruments such as catastrophe bonds.”
