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Japanese insurance giant, NKSJ has said that Canopius will be a key platform in its international growth plans.
Its acquisition of Canopius in May 2014 provides NKSJ with a broad international reach, one that complements a host of recent take-overs.
NKSJ’s move for Canopius follows a string of ambitious acquisitions that include buy-outs in Singapore, Turkey, Malaysia, Brazil and in the case of Canopius, the UK, between 2010 and 2014, totalling around $1.68 billion.
Under plans outlined in NKSJ’s annual report, the insurer is intent on making its overseas segment a more significant part of its group business, increasing its share of profitability from around 7 percent now to 7-10 percent by 2015, as the company looks to increase group profitability from ¥101.5 billion [$996 million] in 2013 to ¥180-210 billion [$1.76 billion-$2.06 billion] by 2015.
The company’s international segment will be responsible for a significant part of this growth, with NKSJ predicting a 7.4 percent increase in overseas subsidiary profitability for 2014. Canopius will undoubtedly play a significant part in this development.
Under NKSJ, Canopius has continued to achieve strong results, driving its combined ratio down to 84.5 percent and ROE up to 25 percent, and the insurer is looking to Canopius to lead the development of its overseas reinsurance business, while continuing to benefit from, and build, on its US and European specialty business.
NKSJ meanwhile continues to forge ahead with growth plans in the domestic Japanese market and its ongoing merger of Sompo Japan and Nipponkao, which should be finalised by September 1.
NKSJ, Canopius, M&A, Japan