When Tokio Millennium Re Ltd. (TMR) was formed in 2000, one of the mandates from its parent company, Tokio Marine & Nichido Fire (TMNF) was to expand and grow the global reinsurance marketplace. As part of this strategy, TMR has been supporting capital market entities investing in reinsurance as an asset class since 2003.
After ten years of service, more than 1,700 transactions and billions of fronted limits, TMR has enhanced its clients' ability to participate and invest in the global reinsurance marketplace. TMR has now expanded further on this commitment with the formation of two wholly-owned subsidiaries.
Tokio Solution manages reinsurance linked transactions either through Shima Re or their clients' privately held reinsurance vehicles. Tokio Solution facilitates the use of TMR's highly rated paper for fronted reinsurance transactions as well as the gearing products offered for TMR fronted portfolios. In addition, Tokio Solution can provide professional claims and loss reserving services.
Tokio Solution offers years of market intelligence and experience in addition to being backed by the strong financials of its parents, TMR and Tokio Marine. Tokio Solution is able to provide the expertise required to assist our clients with the demands associated with managing a successful reinsurance entity.
The property catastrophe market is viewed as an opportunity to deploy capital and earn an attractive risk adjusted return for stakeholders. Generally, entities assuming risk in these transactions are reinsurance firms. Investors not classified as reinsurers (e.g. pension funds) also seek to obtain reinsurance linked assets (RLA) that are viewed as portfolio enhancing, non-correlated investments. However, access to these assets in the absence of a traditional reinsurance structure presents challenges to interested investors.
The main driver of TMR's fronting business, managed by Tokio Solution, is to offer a highly rated solution for investors seeking to overcome these hurdles. Transactions are fronted by TMR and ceded to Tokio Solution clients through Shima Re or their own reinsurance vehicle allowing investors to trade in this non-correlated asset class efficiently and easily. This process ultimately provides reinsurance buyers with ease of access to capital markets capacity.
At TMR, we lead the market in this unique segment and our counterparties view us as a valued partner in these complex transactions.
TMR provides unique solutions for investors looking to obtain a higher return on their capital. TMR offers both recourse and non-recourse gearing options for Tokio Solution clients that are also using TMR paper for their portfolios.
TMR is an active investor in the catastrophe bond market. These investments are analysed and managed as though the exposure forms part of our traditional catastrophe reinsurance portfolio. The TMR Cat Bond portfolio is handled by Tokio Solution on behalf of TMR.
In addition to the Industry Loss Warranties that TMR transforms for our counterparties, Tokio Solution is also a provider of its own net capacity for ILWs with a focus on US wind and earthquake exposures. The TMR ILW portfolio is handled by Tokio Solution on behalf of TMR.
Chief Executive Officer
+1 441 278 1020
Vice President, Client Service Manager
+1 441 278 1083
Vice President, Reinsurance Manager
+1 441 278 1030