Tokio Marine : Agreement to acquire GCube, a managing general agency, through U.S. subsidiary HCC Insurance Holdings, Inc.(50.9KB)

March 5, 2020

Tokio Marine Holdings, Inc.

Agreement to acquire GCube, a managing general agency, through

U.S. subsidiary HCC Insurance Holdings, Inc.

Tokio Marine Holdings, Inc. (President and Group CEO: Satoru Komiya, the "Company") today announced the signing of a purchase agreement to acquire GCube, a managing general agency ("MGA"), through its wholly owned subsidiary, HCC Insurance Holdings, Inc. (Tokio Marine HCC or "TMHCC").

The transaction is expected to close during the first quarter (April to June) of 2020 fiscal year subject to requisite approvals. The investment will be funded by TMHCC's cash on hand.

1. Background of the acquisition and the strategic rationale

1. GCube is an MGA specialized in risks related to renewable energy, such as wind, solar and hydro, whose supply is expected to expand rapidly on a global basis in the future. Moreover, renewable energy is receiving significant attention for its potential to mitigate climate change effects. As a leading player in the industry, GCube underwrites such risks mainly in the United States and Europe, in addition to Australia, South Africa and Asia.
2. The Tokio Marine Group aims to promote the creation of a sustainable future through insurance business, and this acquisition will support the growth of renewable energy business more proactively. The group will obtain business foundation including expertise in underwriting, risk assessment and claims service related to the renewable energy insurance business, which will further expand its profits while supporting growth in this area.
3. The acquirer of this transaction, TMHCC, is focused on specialty insurance business where it can leverage its underwriting expertise and other strengths. TMHCC is a leading specialty insurance group with offices in the United States, Mexico, the United Kingdom and Continental Europe and underwrites a diversified portfolio of business with low correlation. TMHCC has been underwriting energy related business for more than 20 years and has been a capacity provider on GCube's program since 2018.

2. Overview of GCube

(1) Year of establishment	1987
(2) Primary office locations	HQ: London, UK
	Additional locations: Amsterdam, Netherlands; New York,
	New York and Newport Beach, California
(3) Nature of business	MGA*1 specialized in renewable energy risks

(4) Agency premium	Approximately USD 132 Million (JPY 14.7 Billion*2)
		(2018 actual)
(5)	Major insurance products	Construction insurance for power plants, marine cargo
		insurance for materials in transit, property insurance for
		completed plants, and general liability
(6)	Number of employees	Approximately 50 employees

3. Overview of TMHCC

(1) Company name	HCC Insurance Holdings, Inc.
(2)	Head office	Houston, Texas
(3)	Nature of business	Specialty insurance business including medical stop-loss,
		agriculture, directors' & officers' liability, and professional
		liability
(4)	Gross written premium	Approximately USD 4,479 Million (JPY 497.2 Billion*2)
		(2018 actual)
(5)	Shareholder(s)	100% owned by Tokio Marine & Nichido Fire Insurance
		Co., Ltd.
(6)	Number of employees	Approximately 3,300 employees

*1 MGA is an agent with underwriting authority, provided by insurance companies. *2 Exchange rate is $1= JPY 111.0 as of December 31, 2018.