ANNUAL REPORT 2013

Takayuki Sumi
Chief Executive
Officer
Tokio Millennium Re
(UK) Ltd.
In 2013, Tokio Millennium Re (UK) Ltd.
(TMRUK) continued to execute
our strategy from 2012, with a
focus on new business growth,
further diversification and ongoing
integration with the Tokio Millennium
Group. I am pleased to report that
through the year, we succeeded in
bringing those pieces of our
operations together.
Our underwriting team had the full year to prepare for renewals and
that enabled us to pursue some strategic initiatives which led to good
results. For instance, we began marketing our fledgling marine
business. Our offering was well received and had a very successful
first full year of operations.
In addition, TMRUK explored a number of geographic diversification
opportunities. We made our solid foray into the Asian market,
as we took over the third party reinsurance business from our sister
company in Malaysia. This restructuring by our parent company has
created a significant business opportunity for TMRUK. Although the
Asian market can be challenging, our parent company has a good
reputation and brand recognition in the arena, and is known as
a long term and stable partner – qualities that are appreciated and
respected by Asian clients. We aim to undertake further analysis
of the Asian market through 2014 with the goal of strengthening
our presence there and attracting new, high quality business.
We extended our marketing efforts to additional countries in
the EMEA – Bahrain, Kuwait and the United Arab Emirates. Chronic
overcapacity in this part of the world often makes it challenging to
find new business, however, we were well received by the prospects
we met and are looking to make a positive start in 2014.
We also held meetings with potential clients in Israel in an effort
to penetrate that market, and believe that we are making good
progress there – particularly in the areas of property surplus, casualty
and motor. We are confident that our marketing initiatives from
2013 will bear fruit in 2014.
From an operations perspective, our results for 2013 were very
impressive, exceeding the business plan with underwriting net income
contributing to much of this performance. On the expense side, we
succeeded in containing our costs and achieved greater reductions
than our targets.
We had some new talent join our team in the IT and risk
management areas, and their addition has become a valuable asset
to our continued integration with the systems and processes of the
Tokio Millennium Group.
One of the major changes to our operations in 2013 was the
formation of an internal claims team. We now process all of our
treaty claims in-house and have expanded the team to include a
claims manager and two claims handlers. We continue to outsource
our direct and facultative claims, but plan to bring those in-house
through 2014. A recent survey of claims brokers revealed that service
has “improved” or “significantly improved” since we made the shift to
our internal team.
Our outlook for the year ahead remains positive as all of the pieces
of our long term strategy continue to fall into place. We will work on
strengthening our presence and attracting new business in Asia and
the EMEA, as well as growing our casualty business, and developing
our marine business further. In closing, I would like to convey my
thanks and appreciation to our clients and brokers, business partners
and employees for their ongoing dedication and support.
TOKIO MILLENNIUM RE | ANNUAL REPORT 2013 11