Tokio Millennium Re has completed its redomestication to Switzerland following approval from the Swiss regulator, in a move that forms part of the reinsurer’s long-term strategic ambitions.
According to Tatsuhiko Hoshina, CEO of Tokio Millennium Re, the move to Switzerland is an “essential step” in the reinsurer’s efforts to expand, diversify and maximise capital efficiency.
Talking with Bermuda:Re in Monte Carlo, Hoshina said that “by moving to Switzerland we are looking to provide better service, product-wise, to the European market”. He said that local jurisdictional offices enable the reinsurer to be closer to its clients, creating “opportunities we hope to be able to exploit.”
The move is linked to wider changes within the group as TMR develops an increasingly global footprint. In September the reinsurer announced that it would be broadening its reinsurance offering to Asian clients, with the company’s UK subsidiary, Tokio Millennium Re (UK), set to take on Tokio Marine Global Re Asia’s renewals from January 1st 2014. Developments in Asia will be complemented by the launch of a US office, due to be opened in the second quarter of 2014.
The latest move forms part of ongoing efforts to increase diversification at TMR. The reinsurer was originally conceived as a means to diversify risk at its parent, Tokio Marine & Nichido Fire, and the redomestication to Zurich will enable TMR to further expand its footprint by both line and geography.
The company has sought to move away from its original focus on property catastrophe reinsurance, opening offices in Zurich and Sydney in 2010 and 2011 and taking on non-cat lines since 2010, particularly in the US. Zurich will undoubtedly act as a springboard for the further development of this strategy.
Hoshina to remain in Bermuda
Hoshina indicated that he will remain in Bermuda, overseeing group operations from the Island; while Edwin Jordan has been appointed head of reinsurer’s Bermuda branch. Stephan Ruoff is to become head of European operation based in Zurich and has been appointed Group Chief Underwriting Officer.
Tokio Millennium Re, Bermuda, Switzerland, domicile, redomestication