Kiln and Tokio Marine Europe to merge

The new business will be named Tokio Marine Kiln Group Ltd. Current Kiln CEO Charles Franks will become the company's Group Chief Executive Officer. Yusuke Otsuka, Chief Executive of Tokio Marine Europe, will assume the role of Deputy Group Chief Executive Officer at Tokio Marine Kiln. The move, subject to regulatory approval, will come into effect on 1 January, 2014. It will see the new entity provide specialist and corporate insurance products.hide"The main purpose of this exciting move is to address our clients' needs better by providing them with a broader range of products, increased capacity and greater choice and flexibility through Lloyd's and a Company platform," said Mr Franks. Currently the two businesses, which are both part of the Tokio Marine Group following its acquisition of Kiln in 2007 for £422m, operate alongside each other and Tokio Millennium Re (UK) Ltd, a Tokio Marine Group subsidiary company with an operation in London. Once the merger is formalised, Kiln and Tokio Marine Europe will pursue a common strategy under a single management team to deliver growth in Europe and beyond. Tokio Millennium Re is not affected by the move. Giving reasons for the move, Mr 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." Our intention is to create a leading international provider of specialist and corporate insurance, he added. "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," continued Mr Franks. Tokio Marine Kiln will benefit clients by providing them increased scale, a broadened distribution network and combined capabilities, said Mr Otsuka. "It will enable us to provide enhanced flexibility and service," he added. "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," said the insurer. Kiln has been in business since 1962. It reported a gross written premium (GWP) of £1.5bn in 2012. It underwrites a broad range of specialist lines including property, reinsurance, marine & special risks, accident & health, aviation, enterprise risk and life. Its UK operating company, R J Kiln & Co Limited, currently manages five syndicates at Lloyd's and, in terms of capacity, is one of the largest agencies trading in the Lloyd's insurance market. Tokio Marine Europe reported GWP of £262m in 2012 and writes both Japanese-related and local-market commercial risks, including property, marine cargo, liability & personal accident and travel insurance through its European Company platform. It has branches in France, Germany, Belgium, the Netherlands, Italy, Spain and the UK. Tokio Marine Kiln's London headquarters will be based at 20 Fenchurch Street from 2015. The company will be held under the ownership of Tokio Marine & Nichido Fire Insurance Co Ltd.

Kiln and Tokio Marine Europe to merge

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