Calvo Enterprises to acquire multi-million dollar regional insurance underwriter
Tokio Marine Pacific Insurance Limited, which recorded premiums written of approximately $176 million USD in 2022, will be soon be acquired by locally-owned Calvo Enterprises, Inc.
The announcement follows Tokio Marine’s confirmation with the Journal in May that it “is considering strategic options and is working closely with the Managing General Agents and interested parties to ensure a smooth transition.”
TMPI specializes in underwriting medical and property/casualty insurance in Guam and the Northern Mariana Islands through its managing general agents.
In Guam, TMPI has served as the underwriter for Guam insurance carriers Nanbo Insurance, TransPacific Insurance Brokers Corp. and Calvo Insurance’s SelectCare Health Plan, which is a government of Guam provider.
This month, parent company Tokio Marine Holdings, Inc. announced its decision to divest of TMPI.
“In fiscal year 2022, TMPI recorded premiums written of approximately USD 176 million (approx. JPY 23.4 billion) and has been gradually expanding its business,” according to a press release.
“Regardless, as part of our capital efficiency improvement and risk diversification efforts, it was decided to divest TMPI for further portfolio optimization and we have agreed its sale to Calvo, a TMPI managing general agent that has shown a keen interest in TMPI's business portfolio. In response to changes in market conditions, we will continuously review our business portfolio in a timely and appropriate manner to ensure strategic utilization of capital and effective risk control. The sale of TMPI to Calvo is not expected to have a material impact on Tokio Marine Holdings' overall business performance,” the press release further stated.
Calvo’s officials said all the employees will be retained through the transition, which is expected to close in the second half of 2023. Calvo Enterprises is the parent company of the Calvo family conglomerate, which includes Calvo’s Insurance Underwriters, Inc.
Tokio Marine Pacific has been the underwriter of the Calvo's SelectCare Health Plan since its inception. Calvo’s Insurance Underwriters has served as the general agent.
“This strategic move marks a significant milestone for CIU to further expand its market presence and strengthen its commitment to providing world-class regional insurance services,” according to the press release.
“This announcement comes at a special time when Calvo’s Insurance is celebrating its 85th anniversary,” Paul A. Calvo, president and CEO of CIU and vice president of CEI, said. “The acquisition of TMPI further solidifies our position as a trusted leader in the insurance industry and reinforces our dedication to providing tailored insurance solutions to meet the evolving needs of our customers."
Leonard P. Calvo, Chairman and President of CEI, added, "As we embark on this exciting journey, we are committed to building upon TMPI's legacy of excellence while delivering superior service to our clients.”
TMPI President and CEO Yutaka Majima noted that Calvo’s Insurance is the ideal successor in the region.
“We are confident that our customers will enjoy the consistency of service when TMPI becomes part of Calvo’s legacy of trust. We are committed to working together on a smooth transition to benefit our customers and stakeholders,” Majima said.
Frank J. Campillo, Health Plan Administrator for Calvo’s SelectCare, agreed that TMPI's existing policyholders can expect a coordinated transition. “The name of the company will change to Calvo’s SelectCare Insurance, but health insurance customers, policyholders, and stakeholders can continue to count on the excellent service standard and product range they’ve known for decades. They won’t see any interruptions during the transition,” Campillo said. “It is our intention to keep all TMPI employees under the new ownership.”
About Tokio Marine Pacific Insurance Limited Tokio Marine Pacific Insurance Limited, headquartered in Guam and with businesses in Saipan, is a wholly owned subsidiary of Tokio Marine & Nichido Fire Insurance Co., Ltd. through its intermediate holding company Tokio Marine North America, Inc. Tokio Marine has been doing business in the Mariana Islands since 1968. About Calvo Enterprises, Inc. Calvo Enterprises, Inc. (CEI) was founded in 1975 and is the parent company of the Calvo family of companies. Formed by the late Eduardo T. “Jake” Calvo and under the leadership of former Gov. Paul M. Calvo, President Emeritus, and Leonard Calvo, President and Chairman of the Board, CEI has been committed to creating value enterprise for its companies and its home island of Guam. With a workforce of more than 1,500 employees, CEI’s businesses include insurance, banking and finance, real estate, wholesale distribution, news and media, and entertainment. Calvo's Insurance Underwriters (CIU) was established in 1938 and has been serving Guam and Micronesia for 85 years as the region's leading insurance agency insuring more homes, cars, and businesses than any other company through its full range of auto, home, health, life, property, marine cargo, casualty, bonding, and liability insurance coverage. Calvo’s SelectCare Insurance was launched in September of 2000 and insures more than 35,000 members including employees of the Governments of Guam and CNMI, and some of the largest employers in the region. Spearheaded by Paul A. Calvo, CIU has more than 130 employees, two offices in Guam, and affiliate offices in Saipan and Palau.