Medium-Term Target Profile
As we continue our ongoing transformation, Sompo International is well-positioned to capitalize in providing relevant products and services to our clients, many of which face unprecedented challenges in an increasingly volatile economic environment. We have a strong track record of growing our business profitably while adapting to a changing risk landscape, and we will continue to push forward, investing in market-leading talent and technology.
Looking forward, we are steadfast in our commitment to creating the first truly global agriculture insurance business while seeking other opportunities through the development of new and enhanced products. We will expand our industry vertical strategy and increase our portfolio of industry solutions, and our core property, casualty, professional, and specialty products will continue to grow significantly in the U.S., while building relevance and scale in targeted products and markets.
We will continue to build an international market position, by developing the London & Bermuda market wholesale platform, expanding our distribution capabilities and management teams. Our reinsurance business will remain relevant to our market, employees, and cedents through a consistent approach to our business partners. We will continue to grow our geographic footprint, in locations such as the U.K., Europe, Asia Pacific, South America, and Mexico while entering new market spaces.
Our retail platform will further enhance our capability of data analysis and usage, not only in pricing but also in claims handling and digital marketing. We will be able to continuously transform our processes through data and analytics, utilizing our unique skill-transfer structure, which will lead to innovative products, and services. The integration of all retail companies under Sompo International will drive an optimal organization structure, consolidated governance, the efficient use of capital, and expanded opportunities.
Sompo International P&C has a reputation as a market leader known for its financial strength and the ability to attract and retain the best people. We will deliver on our goal of becoming a leader in each country that we operate in and a top-10 Insurance organization globally.
Commercial P&C Strategy
Our strategy is to become one of the top-10 industry leaders within the next five years defined by scale, capability, and profitability. In order to achieve that, we will continue to deliver strong historic growth by attracting and retaining top talent, focusing on strategic risk selection, expanding geographically, and creating operating scale while maintaining core profitability globally in both insurance and reinsurance. Through long-term partnerships with brokers and clients, our leadership and experienced teams generate attractive returns for the risks we assume by utilizing tailored risk management solutions and leveraging top claims talent.
Going forward, the overseas insurance business will continue with a selective specialty underwriting focus and strategic efficiencies, such as the decision to create one platform in London, ceasing all insurance underwriting business with Lloyd’s as of January 2021. With interest rates remaining historically low and as the COVID-19 pandemic continues to create market and economic uncertainty, our commercial P&C operation is ready to maximize new opportunities that these current market challenges are likely to create, while maintaining strong risk management strategies and a superior balance sheet to help drive profitable growth.
Our retail companies deliver a wide range of high-quality personal lines, small-to-medium enterprise, and corporate insurance solutions tailored to local markets. Operating mostly in emerging markets, where a high rate of premium growth is expected over the medium-to-long term, our retail platform helps retail companies achieve sustainable and profitable growth by sharing technical resources and transferring knowledge and expertise. Integrating all retail companies under Sompo International Holdings will drive an optimal organization structure, consolidated governance, the efficient use of capital, and expanded opportunities to help deliver on our goal of becoming a leader in each country that we operate in.
We continue to take a disciplined approach to strategic M&A activities to build scale and scope in support of Sompo Holdings’ vision of becoming a top-10 insurance company which contributes to the quality of life of stakeholders through “A Theme Park for Security, Health & Wellbeing."
The markets are experiencing extreme volatility with the uncertainty of the COVID-19 which we expect creating slowdown in transactions. Along with economic turmoil, we are seeking opportunities to diversify and expand our overseas insurance platforms, whether through acquisitions, investments, or strategic partnerships, by closely monitoring the impact and duration of the outbreak through the Global Transaction Committee, which was established in fiscal 2019, along with the Transaction Core Team, to centralize high-level transaction management system.