Tokio Marine sells Guam subsidiary to Calvo Enterprises
To validate capital efficiency improvement and risk diversification efforts, TMPI was put up for sale.
Tokio Marine Holdings has signed a definitive agreement with Calto Enterprises regarding the sale of Guam-based Tokio Marine Pacific Insurance (TMPI).
The transaction is still subject to regulatory approval and is seen to finish in the latter part of the year, the Japanese insurer said in a filing.
TMPI specialises in underwriting medical and property & casualty (P&C) insurance, which caters to both Guam and the Northern Mariana Islands through managing general agents.
The Guam insurer saw $176m in written premiums last year and has been continuously growing its business. However, to validate capital efficiency improvement and risk diversification efforts, TMPI was put up for sale.
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“It was decided to divest TMPI for further portfolio optimization and we have agreed its sale to Calvo, a TMPI managing general agent that has shown a keen interest in TMPI's business portfolio,” the statement said.
The affiliated hospital service provided by Tokio Marine & Nichido Fire Insurance will not be affected by this move.