Tokio Millennium Re AG has announced that it has been granted approval by the State of New Jersey Department of Banking and Insurance (NJDOBI) to post lower collateral than previously required when underwriting business for New Jersey-domiciled cedants.
TMR, a subsidiary of Tokio Marine & Nichido Fire Insurance Co. Ltd., is the 4th reinsurer worldwide approved by the NJDOBI to post lower collateral than the 100% required for most non-US reinsurers.
In New Jersey, reduced collateral funding percentages are determined on a scale in relation to a reinsurer's financial strength. TMR has been classified at secure-2 level, allowing reinsurers in this class to post 10 percent of collateral - the second lowest collateral requirement in the state.
Responding to his company's lowered collateral requirement, Tatsuhiko Hoshina, TMR's group CEO says: "We are pleased that the NJDOBI has recognised our financial strength and has given us approval to lower our collateral requirement. In addition to the approval from the State of New Jersey, TMR has also received certification from New York and Florida and we will continue to seek similar status in other states. The NAIC’s recent adoption of a passport system for certified reinsurers should accelerate and simplify the handling of our state applications for all states that have passed the necessary laws and adopted implementing regulations.”
TMR completed its re-domestication to Zurich in October 2013 and will maintain a significant presence in Bermuda with their branch operation. TMR is primarily engaged in property and casualty reinsurance and market solutions products, rated A++ (Superior) by A. M. Best and AA- (Very Strong) by Standard & Poor's.
Hoshina concludes, “It is my belief that this movement towards lowering the collateral requirement will benefit not only foreign reinsurers but also US cedants who rely on the capacity from the overseas reinsurance market."
Tokio Millennium Re AG, New Jersey, NJDOBI, collateral requirement