Tokio Marine expects no material impact in 2021 from Greensill
(Reuters) – Japanese insurer Tokio Marine Holdings Inc. said on Tuesday it currently expects no material impact on its results for the fiscal year starting next month as a result of its exposure to the fallout of Greensill Capital Pty Ltd.'s collapse.
Tokio Marine made the forecast in a statement the day after its shares fell 5.6% following a Bloomberg report that the Japanese insurer faced a larger-than-expected exposure to the insolvent British finance firm.
"Our expected net exposure remains unchanged, and as a result we don't see any need to adjust our financial guidance (for the year ending this March) nor do we currently anticipate any material impact on our financials for the next fiscal year," the company said in a statement.
Bloomberg reported that Tokio Marie's Australian unit, which at one point wrote more than A$10 billion ($7.7 billion) of insurance policies for Greensill, is not covered by contracts with a key group of reinsurers.
Of the coverage for Greensill credit notes, $4.6 billion's worth of contracts expired on March 1, court documents show.
The status of the remaining policies and whether they are covered by reinsurance is not clear, but a spokesman said the company had examined this part of the insurance agreements before concluding that there would be no material impact.
The insurer has also said it is investigating the validity of the policies provided to Greensill.
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