Kiln chief executive Charles Franks to run combined £1.8bn GWP firm
Japanese insurer Tokio Marine Group plans to merge its London-based European subsidiary with its Lloyd’s operation, Kiln.
Kiln’s 2012 gross written premium (GWP) was £1.5bn and Tokio Marine Europe’s was £262m, suggesting a combined entity with GWP of £1.76bn.
The merger will take effect from 1 January next year. The combined entity will be called Tokio Marine Kiln Group and be headed by current Kiln chief executive Charles Franks.
Current Tokio Marine Europe chief executive Yusuke Otsuka will become deputy group chief executive of Tokio Marine Kiln.
Tokio Marine’s London-based reinsurance unit, Tokio Millennium Re (UK), will not be affected by the change.
Tokio Marine said the combined entity “will pursue a common strategy under a single management team to deliver continued profitable growth in Europe and beyond”.
The company will provide specialist and corporate insurance products in the Lloyd’s and London company markets.
Franks said: “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.
“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.”
Franks added that the main purpose of the merger is to address client needs by providing them with a broader range of products, increased capacity and more choice and flexibility, as the combined entity will have a presence in both the Lloyd’s and London company market.
He said: “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.”
Otsuka said: “We are excited by this move to deliver sustained profitable growth across Europe, where we have established a foothold, and beyond.
“Through working together, our clients will benefit from increased scale, a broadened distribution network and combined capabilities, which will enable us to provide enhanced flexibility and service.
“I would like to thank our clients for their continued support to date, and reassure them that our commitment to them remains unchanged as we undertake this exciting step towards growing our business.”