TOKIO MARINE EXPANDS FURTHER OVERSEAS

Tokio Marine has unveiled the latest element of its international expansion with the acquisition of the US’s Philadelphia Consolidated. The Japanese firm, which earlier this year bought Lloyd’s managing agent Kiln, is paying $4.7bn for Philadelphia Consolidated. Tokio Marine’s president Shuzo Sumi said the group’s long-term growth strategy centred on the expansion of its international business. James Maguire, chairman of Philadelphia Consolidated and the founder of the company in 1962, revealed he would be joining the international strategic committee of Tokio Marine and would be making “a substantial investment” in Tokio Marine Holdings stock once the deal had completed. Philadelphia Consolidated has 47 offices across the US and employs around 1,400 people. Adding the US operation’s results to Tokio Marine’s 2008 figures on a pro forma basis would have almost doubled the Japanese group’s earnings to Yen31.7bn, it said. Sumi said the Philadelphia Consolidated acquisition would complement its Kiln London market platform. But it is not just in these mature markets that Tokio Marine has been active. Earlier this month China’s insurance authorities gave their approval to the group to convert its Shanghai branch to a wholly owned local subsidiary. Tokio Marine had been awaiting the approval and had decided not to participate in the capital raising of local insurer Tian An in which it had been the major shareholder, because of its plans to establish its own local subsidiary (IDnewscentre, Jul 14). Its new local subsidiary will have registered capita of Yuan200m, the company said.