Howden Enters Japanese Market, Invests in Keystone ILS Capital

Howden, the London-based insurance intermediary group, announced its entry into the Japanese market, launching Howden Re Japan Ltd. and an ILS partnership with Keystone ILS Capital.

Howden also announced the appointment of Kentaro Tada as CEO, Howden Japan. Tada will oversee the strategic growth of Howden’s operations across Japan with immediate effect. Tada has held a number of senior roles in the re/insurance industry, including president and CEO, Rakuten General Insurance Co., president, Guy Carpenter Japan and president and CEO, SBI SSI Holdings.

Howden Re Japan will provide reinsurance brokerage services to life and non-life companies in addition to strategic advice leveraging data, analytics and capital markets expertise for the Japanese market, the group said.

To enhance its reinsurance services in Japan, Howden has invested in Keystone, a Japanese insurance-linked securities (ILS) structuring and capital markets advisory firm.

In recent years, demand for ILS services has grown significantly in the region in light of increased natural disasters and associated economic losses, as well as the strategic need to diversify sources of capital, Howden explained.

“This is the first step on a journey to establish Howden’s long-term presence in Japan. As a company, Howden is dedicated to improving disaster resilience and corporate sustainability, and Japan, as a country that faces significant risks from large-scale natural disasters such as earthquakes and typhoons, can benefit greatly from the specialist global expertise we bring,” commented Kentaro Tada, CEO, Howden Japan.

“Japan’s risk environment is becoming ever more complex to navigate, with cyber-attacks and geopolitical tensions also of concern to both domestic and multinational companies with operations in the country,” Tada added.

“The substantial economic losses expected from large-scale natural disasters in Japan present a critical social issue for the country,” according to Shinji Yamamoto, CEO, Keystone ILS Capital, in a statement. Yamamoto, who is a former executive at Aon Securities, launched Keystone ILS Capital in late 2022.

“Keystone ILS Capital is focused on facilitating international diversification of these risks through insurance-linked securities transactions. Our partnership with Howden allows Keystone ILS Capital to offer comprehensive services tailored to various needs within Japan, which we see as a pivotal step forward in addressing these pressing issues,” Yamamoto continued.

“With the appointment of Mr Tada, who has extensive industry experience, Howden is perfectly placed to provide innovative and imaginative risk solutions to our Japanese clients,” said David Howden, CEO, Howden. “And by bringing new choice to one of the world’s largest and most advanced economies, I’m looking forward to a new chapter for the Japanese insurance market.”

Founded in 1994, Howden provides insurance, reinsurance and underwriting services and solutions to clients ranging from private individuals to the largest multinational companies. The group operates in 55 countries in Europe, Africa, Asia, the Middle East, Latin America, the USA, Australia and New Zealand, employs 18,000 people and manages premiums totaling US$38 billion.

Keystone ILS Capital specializes in providing advisory services and developing platforms for ILS transactions, such as catastrophe bonds and catastrophe derivatives. The company aims to enhance disaster resilience in Japan by facilitating the international diversification of risks through the transfer of catastrophe risks overseas and enabling domestic capital to participate in catastrophe risks abroad.

Source: Howden