ITOCHU Announces Launch of Insurance Business at Lloyd's of London
January 7, 2013
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it has formed a business alliance with Antares Managing Agency Limited (“AMAL”), which runs a syndicate(*) at Lloyd’s of London (“Lloyd’s”) in the United Kingdom, the world’s largest insurance market, to launch an underwriting business at Lloyd’s by underwriting reinsurance from the syndicate. This is the first launch of an insurance underwriting business at Lloyd’s in London by a non-financial sector company in Japan.
Through the alliance with AMAL, ITOCHU will acquire insurance underwriting techniques as well as know-how and expertise in sales, facilitating the full launch and expansion of its insurance underwriting business. Starting in the coming spring, ITOCHU will dispatch staff to AMAL and gradually step up collaboration to jointly execute an overseas insurance business. In the Lloyd’s market, diversification of capital and human resources and growth in the ratio of underwritten risks from Asia and emerging countries are already underway. ITOCHU’s entry into Lloyd’s coincides with this.
Traditionally, ITOCHU’s insurance business centered on overseas insurance brokerage operations in Asia and UK insurance market through Hong Kong based Cosmos Group. In recent years, however, it has developed expertise in insurance underwriting operations, making active use of its ties with group captive insurance companies and joining fund-type insurance business entities.
ITOCHU will seize opportunities with the insurance underwriting business, which will be strengthened through the alliance with its core insurance brokerage business, aiming to bolster its overseas insurance business.
(*) Syndicate: A Lloyd’s syndicate is an organizational unit that underwrites insurance risks.
Lloyd’s of London: A world-leading market specializing in insurance with a history of more than 300 years, based in London and implementing insurance underwriting operations in at least 200 countries and territories. With approximate premium revenues of 3 trillion yen, 57 specialized insurance companies manage 88 syndicates.