London, 1 June 2020 – Tokio Marine HCC today announced it has completed the previously announced acquisition of specialist renewable energy underwriter, GCube. The acquisition will create a new ‘centre of excellence’ in renewable energy insurance, combining GCube’s 25-year track record supporting renewables developers and asset owners worldwide with Tokio Marine HCC’s global footprint and financial scale.
The renewable energy sector is an evolving and dynamic space that is witnessing significant growth. The size, complexity and financial value of generating assets continues to increase, while the industry is expanding rapidly not only in established markets in the United States, Europe and China, but also in new hotspots in South East Asia, South America, the Middle East and Africa.
The market expansion results in changing risk profiles for insureds and their project development and operations. Insureds have risk from extreme weather and natural perils, cyber security, supply chain pressures, and evolving mechanical and electrical breakdown issues. Managing these unique exposures requires an array of specialist insurance products, alongside a long-term, sustainable outlook from the market and its insurers as insureds need financial strength and resilience.
GCube has established a reputation for working closely with its insured clients and the wider market across on- and offshore wind, solar, hydro, wave, tidal and energy storage, to assess and tackle emerging risks. Following the acquisition by Tokio Marine HCC, GCube will be well-placed 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.
Fraser McLachlan, GCube’s Chief Executive Officer, said: “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. 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.”
Simon Button, Chief Underwriting Officer – London Market division of Tokio Marine HCC – International Group, commented: “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. 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.”