Tokio Marine Kiln (TMK) has unveiled a drastic reorganization of its Asian operations, which includes closing its Hong Kong office with immediate effect, citing challenging market conditions.
The company is likely to make arrangements over the next six months for the run-off of its Hong Kong business. TMK’s Asian operations are based primarily in Singapore with supporting offices in Hong Kong and Shanghai.
TMK said the decision has been made after re-assessing the ongoing, challenging market for the engineering, marine cargo and marine liability lines written out of Hong Kong, which have made the cost of maintaining the office unsustainable.
Charles Franks, group CEO, said: “Our Hong Kong team have all made huge contributions to our efforts in Asia and we will do all we can to support them through this difficult time. We remain however, firmly committed to our Asian strategy and our Singapore and Shanghai offices will continue to operate and pursue their respective growth strategies; focusing on accident & health, aviation, marine cargo, trade credit, political risks, property, agriculture treaty reinsurance and property treaty reinsurance business throughout Asia.
“We also appreciate the dedication of our Singapore and Shanghai teams as they continue to support our ambitions in the region. They will help to manage the runoff of the Hong Kong business in a professional and organised way.”