Asian News - Japan: Sompo Japan sets up reinsurer but may relinquish SCOR stake
Source: Asia Insurance Review | Jan 2016
Property and casualty insurance giant Sompo Japan Nipponkoa Holdings (SJNH) has established a reinsurance company under its British unit Canopius in Zurich, and may give up a stake in the French reinsurer, SCOR.
The new company, Sompo Japan Canopius Reinsurance, was incorporated last November and is capitalised at CHF100 million (US$97.8 million), with Canopius holding a 100% stake.
Sompo Japan Canopius Reinsurance has a financial strength rating of A (Excellent) and an issuer credit rating of “a+” from A.M. Best. The outlook assigned to both ratings is stable. The ratings reflect the new company’s supportive risk-adjusted capitalisation and the expectation of good operating results.
Meanwhile, SJNH will abandon plans to raise its stake in SCOR to 15% and may unload the 9% stake it already owns in the French reinsurer, The Nikkei reported. It is said that SCOR has resisted the Japanese group’s attempt to raise its holdings. SJNH is re-examining its overseas strategy ahead of the new medium-term plan to start this year, and this likely played a role in the decision over SCOR.
SJNH agreed last March to acquire a 7.8% stake from SCOR’s largest shareholder, Swiss investment firm Patinex. It also said then that it planned to raise the stake to 15% and have a seat on the board.