ANNUAL REPORT 2013

Kathleen Faries
Chief Executive Officer
Tokio Solution
Management Ltd.
Throughout 2013, Tokio Solution
Management Ltd. (Tokio Solution)
was very busy putting all of the
necessary pieces in place to be
the premiere full service market
facilitator for third party capital –
an ambitious but attainable goal.
Since 2013 marked our first full year
of operation, we focused our efforts
on rebranding under the Tokio Solution name and carving out
a strategic position in the market. We invested time in educating
our existing and prospective clients about the additional services
and value Tokio Solution could now provide being licensed as an
Insurance Manager and through Shima Reinsurance Ltd. (Shima Re),
our Bermuda domiciled segregated accounts company.
Launching Shima Re, our new subsidiary and transformer, was
extremely challenging as we had to ensure all the system securities
were in place to firewall off our clients’ non-fronted direct
transactions from Tokio Millennium Re’s own business.
Other pieces were also put into place throughout the year so that
Tokio Solution could begin delivering on our stated mandate and
take advantage of opportunities in the marketplace. We put into
place the necessary components to set up and manage reinsurance
vehicles that are specific to a client, and not owned by Tokio
Millennium Re. We successfully developed a reinsurance vehicle
for one of our largest clients in 2013 and are now managing that
reinsurance vehicle.
Another major objective for Tokio Solution in 2013 was building
a cost efficient private catastrophe bond platform. We accomplished
this in the final quarter of 2013. Tokio Tensai is a Shima Re facility
that gives Tokio Solution the ability to cede risk to investors through
a private catastrophe bond offering, settled through the Depository
Trust & Clearing Corporation (DTC).
Tokio Solution’s service offering includes fronted and leverage products
which need to be managed by an experienced and professional team.
The regulatory environment for both reinsurance and third party
capital management also needs to be monitored carefully. Thankfully,
we are fortunate to have a team of highly experienced reinsurance
professionals who add value to the Tokio Solution offering every step
of the way. Together, these pieces laid the groundwork necessary for
Tokio Solution to capitalise on future opportunities.
The outlook for 2014 is promising. With the progress we made in 2013,
we can now focus on bringing clients onboard, ramping up our direct
collateralised client management, issuing more Tokio Tensai notes
from our platform and expanding our fronting and leverage facilities.
We have assembled a great team and have the necessary platforms
and pieces in place to successfully manage all aspects of our third
party capital clients’ reinsurance activities as well as Tokio Millennium
Re’s plans for third party capital engagement in the future.
TOKIO MILLENNIUM RE | ANNUAL REPORT 2013 15