September 2014 12 Bermuda:Re/insurance+ILS


“Our parent company wanted to diversify the geographical spread


of its portfolio, away from its traditional concentration on Japanese windstorm and earthquake,” explained Hoshina. As a result, TMR entered the international property catastrophe space, initially writing US hurricane, European windstorm and New Zealand earthquake business as a monoline reinsurer, which complemented TMNF’s Japanese-centric portfolio.


Hoshina explained that in its early days, “TMR was not evaluated


on its profitability or its premiums written. Instead, focus was placed on our ability to enhance the results of the wider group, as well as how well we could contribute to the group’s return on risk.” Leveraging on its trademark analytical approach and constant drive for innovation, TMR celebrated one successful year after another, making it a significant player in the Tokio Marine Group’s portfolio of international companies.


These attributes—TMR’s focus on analytics and innovation—have


stood the company in good stead in a fiercely competitive market. “From the outset, we wanted to be a company that really invests in analytics,” explained Hoshina. “We were one of the first reinsurers to license all three property catastrophe models, in addition to developing our own proprietary models. We wanted to be experts in our field and be constantly at the cutting edge of property catastrophe analytics.”


Hoshina added that as part of its corporate culture, the company


strives to apply a scientific approach to its understanding of risk. TMR’s analytical capabilities are a key differentiator among its peers and as such the company has placed significant investment in its R&D centre, Tokio Marine Technologies, based in Duluth, Georgia. The researchers at Tokio Marine Technologies are in constant collaboration with TMR in their efforts to better understand, model and analyse complex and emerging risks in both the property catastrophe space and across its non-catastrophe lines of business. TMR continues to place significant emphasis on its analytical capabilities.


By line and geography


From its early days as a Bermuda monoline reinsurer, the company has since evolved into a multi-line, multi-class reinsurer. In 2013 TMR established its headquarters in Zurich, a move that aligns with its goal of developing its European footprint. Despite its growing presence in overseas markets, Hoshina remains appreciative and fond of TMR’s beginnings in Bermuda, attributing much of the company’s success to its island location, where one of TMR’s branches remain. As he explained, Bermuda’s gravity, pulling in clients and brokers, has been of enormous benefit to TMR as it developed its presence on the Island and beyond. “We wouldn’t be where we are now were it not for being located in Bermuda for so many years.”


TMR is now looking increasingly further afield as it develops a global footprint that continues to build on its initial ambitions as a


risk diversification vehicle for the Tokio Marine Group. In addition to its headquarters in Zurich, TMR has branches in Hamilton and Sydney, a sister company in London, and a newly opened US office in Stamford, Connecticut. TMR’s global presence has enabled the company to locate its teams in key geographies, achieving proximity to an increasingly international and growing client base.


It has also helped the company diversify from its initial focus on property catastrophe reinsurance into longer tail casualty lines. As Hoshina explained, “The softening of prices within property catastrophe following the influx of capital markets capacity has helped us concentrate on non-catastrophe business and geographical spread outside the US.”


So too has a desire to further diversify its book of business, much as


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