Japanese insurer Tokio Marine is considering expansion of its international portfolio with potential acquisitions valued at around $10bn (Y1.51trn), reported Reuters.
In an interview with the news agency, Tokio Marine international business co-head Chris Williams revealed that the company is actively monitoring public companies worldwide for opportunities.
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The insurer’s international business now accounts for more than half of its profits, a steep increase from less than 3% two decades ago.
Williams stated: “Something we could do relatively easily would be in the $10bn range.”
He highlighted North America as the largest insurance market with numerous opportunities, alongside prospects in Asia, Europe, Canada and Australia.
“We have aspirations to grow our business in all of those locations,” he said.
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By GlobalDataDespite Japan’s recent shift from negative interest rates, which historically drove Japanese insurers to seek investments abroad, Tokio Marine’s acquisition strategy remains unaffected.
The executive did not give a timeline but said the company is patient in selecting quality businesses for acquisition, whether they are smaller “bolt-on” deals or larger transactions.
“We track all the public companies you would expect around the world,” Williams said.
“Our strategy when we look at these businesses is to say what has been the flight path, what are the results… over a period of time.”
Tokio Marine has a history of purchases in the US, including the acquisition of HCC in 2015 for $7.5bn and Pure Group in 2020 for $3.1bn.
In July 2023, Tokio Marine HCC agreed to acquire US managing general underwriter Gulf Guaranty Employee Benefit Services.
The insurer is now focusing on commercial insurance expansion, with interests in sectors such as cyber, rather than personal lines such as home and motor insurance.
Commercial insurers, including those at Lloyd’s of London where Tokio Marine operates, have been adjusting to recent challenges by raising premium rates and refining their coverage scope.
Lloyd’s reported a doubling of its underwriting profit last year.
“One of the things we like about London is that it is quite innovative,” Williams said, adding that “we would like to continue to expand our Lloyd’s platform”.
Meanwhile, Tokio Marine is contemplating the sale of its South East Asian life insurance business, valued at $1bn, with Goldman Sachs and Jefferies managing the sale process.
