Canopius, Sompo Japan Nipponkoa set up Swiss unit

Sompo Japan Nipponkoa Holdings has established a reinsurance company under British unit Canopius.

Headquartered in Zurich, the company will begin operations as early as this year. It is capitalised at USD97.6 million, with Canopius holding a 100 percent stake. A US branch will also be set up to target the North American market.

The Japanese company has offered reinsurance under core unit Sompo Japan Nipponkoa Insurance. But with its coverage value for business fire insurance at only around 85 billion yen ($688 million) a year, it had struggled to expand the operations on its own.

Now the highly specialised reinsurance business will be transferred to the new Swiss company to generate synergies with Canopius.