The second biggest casualty insurance company in Japan, Tokio Marine is purchasing the American company Delphi Financial Services, which is based in Delaware. The acquisition will be for $2.7 billion, which places a valuation on the company which has a 73 percent premium, indicating that Asian companies may be taking their first steps into the U.S. marketplace as a diversification effort, following the disasters that have struck their own local markets. This acquisition is one of the five largest insurance purchases this year and is easily among the biggest ventures…
Read MoreTag: Japan insurance
AFLAC, strong ties to Japan business
As the numbers keep rising on the estimate of losses in Japan, so do the growing concerns regarding the financial stability of insurance companies that were heavily vested there. One company, in particular, had at least three-quarters of their overall business in Japan. AFLAC, a top performing, Fortune 500 company, insures two of the largest insurance buyers in the world; the United States, and Japan. AFLAC sells supplemental health (GAP) insurance, life insurance and cancer insurance. Even though they don’t have property coverage in Japan, when the Earthquake and Tsunami…
Read MoreRead carefully…insurance policies carry nuclear exclusions
Insurance companies are reeling from the possible cost of the disaster in Japan. It will be weeks before the entirety of the damages can be put into any kind of perspective to be tallied. It isn’t just the property damage and the economic loss; the lives that were lost will also be a factor. Another aspect of this disaster is the nuclear contamination from damaged reactors. Most traditional policies exclude coverage for nuclear accidents. There is more to assessing damage than people might realize. You have to determine what was…
Read More