Yamamoto’s Keystone ILS Capital gets Howden investment, Thienel added as Director

Keystone ILS Capital, a structuring and advisory specialist focused on catalysing more active use of insurance-linked securities (ILS) in Japan that was launched in the country by former Aon Securities executive Shinji Yamamoto, has received an investment from broking group Howden and appointed Carsten Thienel as a Senior non-executive Director, Artemis can report.

Shinji Yamamoto launched Keystone ILS Capital in late 2022, after having spent almost 14 years working at Aon Securities, leading capital market and ILS business activities for the insurance and reinsurance broker in Japan and playing a key role in numerous Japanese catastrophe bonds over the years.

His new business, Keystone ILS Capital, aims to expand the use of insurance-linked securities (ILS) for risk transfer in Japan, by helping local cedents and corporate risk transfer buyers to better understand the potential of ILS such as catastrophe bonds to protect themselves against peak natural catastrophe perils such as Japanese earthquakes and typhoons, then arranging transactions to support their risk transfer needs.

In addition, Keystone ILS Capital is also helping local investors to better understand the insurance-linked securities (ILS) investment landscape and has an ambition to help increase the amount of Japanese institutional capital that accesses the returns of insurance and reinsurance risk around the globe.

Keystone ILS Capital has entered into a partnership with international broking firm Howden Group and received an investment from the firm, it is announced today.

Howden has taken a minority shareholding in Keystone ILS Capital, which is seen as a good way for Howden to expand its growing ILS investment banking and broker-dealer footprint into the Japanese market, through this partnership with a locally recognised expert firm.

Howden highlighted the growing demand for ILS services in the region, given increasing costs and frequency of disasters and the need to diversify sources of risk capital.

Shinji Yamamoto, CEO, Keystone ILS Capital explained, “The substantial economic losses expected from large-scale natural disasters in Japan present a critical social issue for the country. Keystone ILS Capital is focused on facilitating international diversification of these risks through insurance-linked securities transactions.

“Our partnership with Howden allows Keystone ILS Capital to offer comprehensive services tailored to various needs within Japan, which we see as a pivotal step forward in addressing these pressing issues.”

For Keystone ILS Capital, the partnership with Howden means that the company can offer local companies and investors a full-suite of ILS services and builds its stature, including for the issuance of ILS and provision of broker-dealer related activities.

Carsten Thienel, a Managing Director at reinsurance broker Howden Re and based in Tokyo, Japan, has taken on a Senior non-executive Director role at Keystone ILS Capital, we have learned.

Thienel has a long career history with over 30 years in reinsurance, much of which has had an Asian focus, and was previously the Managing Director for Treaty, Asia at Guy Carpenter, and before that the CEO, Reinsurance for Asia Pacific at broker Ed, prior to which he held a number of senior management roles at Hannover Re.

He has experience in property retrocession, capital markets reinsurance transactions and insurance-linked securities (ILS) as well, gained across his career.

Also this morning, Howden announced its entry to the Japanese market for reinsurance broking, with the launch of Howden Re Japan Ltd.

Kentaro Tada has been appointed as CEO of Howden, Japan. He previously held senior re/insurance sector positions, including President and CEO, Rakuten General Insurance Company, President, Guy Carpenter Japan and President and CEO, SBI SSI Holdings.

Kentaro Tada, CEO, Howden Japan, commented, “This is the first step on a journey to establish Howden’s long-term presence in Japan. As a company, Howden is dedicated to improving disaster resilience and corporate sustainability, and Japan, as a country that faces significant risks from large-scale natural disasters such as earthquakes and typhoons, can benefit greatly from the specialist global expertise we bring. Japan’s risk environment is becoming ever more complex to navigate, with cyber attacks and geopolitical tensions also of concern to both domestic and multinational companies with operations in the country.”

Howden Re Japan will provide reinsurance brokerage services to both life and non-life companies in the country and will also offer clients strategic advice, leveraging data, analytics and capital markets expertise for the Japanese market.

Howden sees the investment in Keystone ILS Capital as enhancing its new Japanese reinsurance offering, meaning it has local expertise to assist with building out an ILS business there and can offer a full-suite of risk capital solutions.

It’s encouraging to learn of Keystone ILS Capital’s continued progress in building out a Japanese ILS specialist offering, given the need for risk capital to help in covering more of the regions natural disaster losses.

Given Japan’s significant natural disaster exposure and also large institutional investor community, there is a real opportunity to embed ILS arrangements more deeply into local insurance and risk management practices, to help those holding catastrophe exposure diversify their risk capital sources, and tap into capital markets using securities and other financial arrangements.

David Howden, CEO, Howden also said, “It is hugely exciting moment for us as we enter the Japanese market, bringing a fresh, dynamic and entrepreneurial mindset underpinned by an employee ownership model that means we’re driven to achieve more, collaborating across borders and specialisms to deliver for clients. This approach to client service and a commitment to long-term business relationships means we have many shared values with Japan’s corporate culture.

“With the appointment of Mr Tada, who has extensive industry experience, Howden is perfectly placed to provide innovative and imaginative risk solutions to our Japanese clients. And by bringing new choice to one of the world’s largest and most advanced economies, I’m looking forward to a new chapter for the Japanese insurance market.”