Tokio Marine HCC has completed the acquisition of specialist renewable energy underwriter GCube, after the deal was announced in March.
According to Tokio Marine HCC’s statement, the move will boost its capabilities in renewable energy insurance, by combining GCube’s 25 years of experience in the international renewables industry with its global footprint and financial scale.
Following its acquisition, GCube will be able to expand its presence in key renewables markets worldwide, including Japan and Taiwan, while continuing to develop and enhance its product offering to asset and portfolio owners, the statement said.
With increased focus on renewable energy as a way to deal with climate change, the size, complexity and financial value of generating assets continues to grow rapidly. The industry is bourgeoning, not only in established markets in the United States, Europe, and China, but also in emerging economies in Southeast Asia, South America, the Middle East, and Africa.
This growth, Tokio Marine said, is accompanied by changing risk profiles for insureds and their project development and operations. These risks include extreme weather and natural perils, cyber security, supply chain pressures, and evolving mechanical and electrical breakdown issues.
“Like GCube, Tokio Marine HCC has committed significant investment to renewable energy insurance in the past decade, and the acquisition recognizes the significant benefit we can jointly bring to this market,” said Simon Button, chief underwriting officer of Tokio Marine HCC. “As a business, we focus our strategic growth on acquiring partners that offer a unique strength and depth in the insurance marketplace and bringing GCube into the Tokio Marine HCC fold is the natural culmination of that strategy in clean energy.”
“Becoming part of Tokio Marine HCC is an exciting step for GCube, giving us real impetus as we continue to support the global expansion of renewables,” said Fraser McLachlan, CEO of GCube. “Critically, our shared values mean we can build on the attributes that set us apart in the market, including our drive to share knowledge to the benefit of the sector, our support for new technologies and our integrity in paying claims.”