New commercial specialty insurer entering Canada

Tokio Marine Holdings Inc. plans to incorporate a new property and casualty insurer in Canada next year.

The Japanese insurer announced Nov. 26 its new Canadian insurer will focus mainly on specialty business and have “limited overlap” with Tokio Marine & Nichido Fire Insurance Co. Ltd.’s existing Canadian branch.

Tokio Marine Holdings intends to apply with the Canadian government for incorporation of its new Canadian P&C company. That yet-to-be established firm plans to commence business in the first half of 2022, subject to regulatory approvals. Tokio Marine plans to put about Cdn$75 million in capital into the new Canadian insurer.

With its new Canadian insurer, Tokio Marine suggested it is “aiming” to bring in “several hundred million” Canadian dollars a year in premium, within five years.

Tokio Marine Holdings will continue to operate Tokio Marine & Nichido Fire (TMNF)’s existing Canadian branch “regardless of the establishment of the new company,” Tokio Marine said in its Nov. 26 release.

TMNF’s chief agent in Canada is Craig A. Pinnock. In Canada, TMNF had net premiums written of $45.8 million in 2019 (including $21.2 million in commercial property, $11.36 million in auto, $8 million in aircraft and $3.7 million in liability), up from $41.2 million in 2018, according to the 2020 Canadian Underwriter Statistical Guide. TMNF also writes personal property, marine, fidelity and boiler and machinery in Canada.

The Canadian market is attractive to Tokio Marine because of its profitability, size and stable business environment, Tokio Marine said Nov. 26. With more than $65 billion a year in premiums, the Canadian P&C market is the eighth largest in the world, the company said.

Tokio Marine bought Houston-based HCC Insurance Holdings Inc. in 2015 for US$7.5 billion. At the time, HCC’s insurance subsidiaries included Houston Casualty Company. When Tokio Marine bought it, HCC’s coverages included marine, energy, directors’ and officers’ liability, professional indemnity, casualty, surety and credit.

On Feb. 4, 2020, Tokio Marine HCC announced it hired Scott La Croix to work out of Winnipeg as head of the Canadian operations of Tokio Marine HCC’s specialty group. The Tokio Marine HCC specialty group provides coverage for sports, hospitality, entertainment and leisure.