Mitsui Sumitomo Insurance has announced plans to ramp up its underwriting capacity in London’s insurance market, reported the Financial Times.
The Japanese owner of Lloyd’s of London underwriter MS Amlin aims to boost its capacity by 50% to £3bn ($3.77bn) over the next five years.
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With this move, it aims to bolster its presence in the UK hub over competitors in the EU and US.
Speaking to the publication, Mitsui Sumitomo Insurance CEO Shinichiro Funabiki highlighted London’s role in analysing complex global risks, from supertankers to satellites, as a key reason for the company’s investment focus on the UK.
London was “still… very investable” despite Brexit and political instability, he stated.
He further noted: “The fact that insurance grew here as an industry and as a business, it means that there is so much history and expertise, experience, skills, knowhow that is fostered here in the UK… and I would, as a business leader, never undervalue that.”
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By GlobalDataThis month, Mitsui Sumitomo celebrates a century since its initial investment in London, and the move is expected to solidify the group’s position as one of the foremost underwriters in the London market.
Currently, Mitsui Sumitomo writes approximately £2bn of business within Lloyd’s itself.
Additionally, the company rebranded its subsidiary, MSI Europe, to MSIG UK to strengthen its presence in the company market outside of Lloyd’s and diversify beyond serving primarily Japanese clients.
To support its growth, Mitsui Sumitomo plans to recruit more specialist underwriters and enhance its technology platform, according to Funabiki.
“We are now ready to… invest more into MS Amlin and use it as a driver to lead our international growth going forward,” he added.
The acquisition of UK-listed Amlin in 2015 for £3.5bn was seen as a transformative move for Mitsui Sumitomo’s international operations, providing a platform for expansion beyond Asia.
Funabiki revealed that mergers and acquisitions are being considered once more to further the group’s international ambitions, with both large-scale and smaller, strategic acquisitions being potential options.
Meanwhile, in a recent development, Mitsui Sumitomo is reportedly crafting an insurance solution tailored to the emerging space tourism sector.
This new type of coverage is intended to address accidents and other potential issues that policyholders may encounter while in space, akin to traditional travel insurance.
