Full Capacity: Japan’s big 3 make waves globally

May 23 2026 by

Welcome to Full Capacity, a weekly briefing on all the most important developments of the past week with a personal take on the news from our editor-in-chief, Mithun Varkey, delivered to your inbox every Saturday.   

M&A spotlight. Malaysia’s MNRB Holdings has agreed to acquire an 80% stake in Labuan Re for US$100 million. Malaysian Re, MNRB’s reinsurance business, currently holds the remaining 20% stake and will retain its interest. 

Liberty Mutual has increased its shareholding in Indian JV to 74%. Enam Securities, its Indian partner, now holds a 26% stake in the JV. 

Batten down. Northeastern parts of Asia, including greater China, Japan and South Korea, must brace themselves for the potential of a more “turbulent typhoon season” this year, with El Niño expected to shift storm tracks northeast and intensify activity, according to Munich Re. 

Sore point. War has emerged as the top political violence risk for companies in Asia Pacific following the US-Iran conflict, overtaking civil unrest, according to Allianz Commercial. Allianz said that insured losses from the Middle East conflict could exceed those from political violence claims linked to the war in Ukraine. 

Paying up. Willis and Global Parametrics have triggered payouts under a parametric policy for Vietnamese coffee farmers affected by excessive rainfall. The cover, placed with Bao Minh Insurance in late 2025, protects against yield losses in Vietnam’s Central Highlands. 

Affordable cover. Australia’s cyclone reinsurance pool has reduced premiums and improved insurance access in high-risk regions since its launch in October 2022, the Australian Reinsurance Pool Corporation (ARPC) claims. Average home premiums in the most exposed areas have fallen by 37%, while insurer participation has lifted availability by 27%, the ARPC said.  

Global shift 

Japan’s three P&C powerhouses have all delivered record or near-record results for FY25, and the headlines are unmistakably positive.  

MS&AD, Tokio Marine and Sompo all posted strong profits, tighter combined ratios and a sharp drop in natural catastrophe losses.  

But the more important story is not the size of the profits – it is the quality of the earnings and what they reveal about the sector’s transformation. 

The real engine of growth is no longer Japan. 

Tokio Marine now generates more than 60% of its P&C premiums from overseas, while MS&AD and Sompo are seeing double-digit earnings growth driven by Europe and the Americas.  

Overseas NWP grew by 13.6% for MS&AD, 6% for Tokio Marine’s P&C arm, while Sompo’s overseas revenue rose by 9.6% to US$15bn.  

Domestic books, by contrast, are mature. They are delivering stability, rate-driven pricing and underwriting discipline rather than expansion. 

At the same time, the players’ reliance on strategic equity sales, which is topping out, continues to flatter earnings.  

MS&AD’s adjusted profit under J-GAAP jumped by 27% to US$6.3bn, but its FY26 forecast dropped by US$746m, mainly due to lower gains from equity disposals.  

Tokio Marine’s adjusted net income excluding capital gains rose by 17%, while its reported figure including equity sales fell by 1%. 

Domestic combined ratios have tightened into the mid-90s: MS&AD’s domestic business hit 95%, Tokio Marine & Nichido 95.6%, and Sompo Japan 91%.  

Overseas portfolios are even stronger, with Sompo’s global reinsurance combined ratio improving 19.9 points to 66%, MS Amlin’s COR was down to 83%, while Tokio Marine HCC’s combined ratio was 87.8%. 

But there are caveats. 

This year’s results were helped along by a benign catastrophe experience.  

Domestic nat cat losses, excluding residential earthquake insurance, fell by 72% for MS&AD, while Tokio Marine’s Japan nat cat losses dropped by 61.6%. Sompo’s domestic nat cat incurred losses fell by 39%.  

A return to normalised catastrophe activity would quickly test the sustainability of current profit levels. 

There are also early signs of pressure.  

Tokio Marine flagged reserve strengthening tied to Greensill litigation in Australia, and some international lines are already showing rate softening.  

Still, the broader trajectory is clear. 

Japan’s P&C majors have completed their transformation into globally diversified, capital-efficient insurers with sophisticated underwriting capabilities.  

And their aggressive M&A plans as we have seen with Sompo-Aspen, MS&AD-WR Berkley and Tokio Marine’s stated ambitions, their globalisation efforts will shift gears. 

They are no longer just domestic players with overseas exposures; they are global groups with a Japanese anchor. 

People moves

In senior appointments around the region, Guy Carpenter has appointed Andrew Hare as head of growth for Asia Pacific.

Aon has hired Max Hirai as CEO of Japan, while Chris Camerieri was named enterprise client group growth leader for APAC.

Zurich has also made two key APAC appointments – Giles Crowley as head of customer and distribution management and Kin Lee as head of energy, while Zurich-backed MGA Cowbell has named Gerry Power as general manager for Australia.

Do check out our weekly people move round-up to stay up to speed on the most important appointments in the region.

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