In what will no doubt be seen as a major blow to recent Government incentives, Tokio Marine Kiln yesterday announced it will be closing its Hong Kong office with immediate effect, and as part of a reorganisation of its Asian operations based primarily in Singapore, would be making arrangements over the next six months for the orderly runoff of the business.
This 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 chief executive commented: “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.”
In her October policy address, Hong Kong chief executive, Carrie Lam announced corporate tax concessions for marine insurers of up to 50%.