Kiln Group, Tokio Marine Europe to form combined operation

Kiln Group and Tokio Marine Europe, both part of the Tokio Marine Group, have announced plans to form a combined operation, effective Jan. 1.

The new business, subject to regulatory approval, will operate under a combined management team to continue growth in Europe and elsewhere, a statement from Kiln Group said.

Tokio Marine Kiln Group Ltd. will be led by Charles Franks as group CEO and will provide specialist and corporate insurance products within the Lloyd’s and Company markets.

Yusuke Otsuka, chief executive of Tokio Marine Europe, will assume the role of deputy group CEO of the new operation. The business will be based in London from 2015 on, according to Kiln.

“In an industry where scale and financial strength are increasingly important, we must take advantage of our position as part of one of the largest and strongest insurance groups in the world,” Franks commented in the statement.

“We have played a key role in the delivery of Tokio Marine’s international strategy for five very successful years, and now is the right time to take this proactive step and build on the strength of that relationship.

“By bringing together two strong, longstanding businesses with distinct yet complementary capabilities, our intention is to create a leading international provider of specialist and corporate insurance to deliver continued profitable growth. The main purpose of this exciting move is to address our clients’ needs better by providing them with a broader range of products, increased capacity and greater choice and flexibility through Lloyd’s and a Company platform.

“While this is an important move for Kiln, our commitment to Lloyd’s and to our Names remains solid and our focus on empowered underwriting will not change. Furthermore, I am confident that with our common values, strong talent pool and shared vision, we will create a leading international business that achieves continued profitable growth.

In Canada, the Tokio Marine Group & Nichido Fire Insurance Co. operates in Vancouver and in Toronto with affiliated agency Northbridge Financial Corp. according to its website.

Kiln has been in business since 1962. It reported a gross written premium of £1.5 billion in 2012 and underwrites a range of specialist lines including property, reinsurance, marine and special risks, accident and health, aviation, enterprise risk and life through its offices in the United Kingdom, Germany, France, Belgium, Singapore, Hong Kong, China and Brazil, and also as part of the Lloyd’s specialist insurance market.

Tokio Marine Europe, which originates its operation in 1880, reported gross written premium of £262 million in 2012 and writes both Japanese-related and local-market commercial risks, including property, marine cargo, liability and personal accident and travel insurance through its European Company platform. It has branches in France, Germany, Belgium, The Netherlands, Italy, Spain and the U.K.