JA Kyosai (Zenkyoren) has established a reinsurance subsidiary, Zenkyoren Re Limited, in the Crown Dependency of Guernsey.
The new Zenkyoren Re structure has begun operations and will be operated by Aon Insurance Managers on behalf of Zenkyoren.
In a statement, Zenkyoren noted that risks, especially natural disaster risks, have become increasingly complex in recent years due to climate change and globalization.
The company explained that many cooperatives and mutual insurance companies around the world face structural challenges where risk is concentrated in specific regions or industries.
Zenkyoren observed that Japan is no exception and its natural disaster risk is mainly focused on earthquakes in Japan.
To help address this challenge and take advantage of 2025 being designated as the International Year of Cooperatives, Zenkyoren founded Zenkyoren Re.
Through this new entity, Zenkyoren aims to promote more diversified risk retention at the Zenkyoren Group level, including through new reinsurance subsidiaries, by supporting the transfer of risks among member organizations of the International Cooperative Mutual Insurance Federation (ICMIF) and other institutions, as well as its own acceptance of overseas natural catastrophe risks.
“Zenkyoren Re will first underwrite overseas natural disaster risks of ICMIF member organizations and others on a small scale, and then gradually expand the size of its investment portfolio. Through this process, the company aims to achieve stable medium- and long-term reinsurance underwriting.” Zenkyoren said in the announcement.
The company continued, “The subsidiary will also work to further strengthen cooperation with the global cooperation network by positioning ICMIF member organizations and other cooperative entities around the world as major ceding companies (reinsurance customers).
“From the perspective of ensuring the stability of asset management of subsidiaries, we will also invest in tools such as catastrophe bonds.”
