Tokio Marine Holdings, Inc. in 3 stories

Abundant reinsurance and catastrophe-bond capital are shifting bargaining power back toward insurance buyers.

Its primary insurance operations gain from lower protection costs, although the group also writes some reinsurance.

The end of negative rates is transferring value from leveraged assets and exporters toward banks and insurers.

Higher yields increase income earned on insurance float and improve the economics of newly written long-duration policies.

Heavy federal borrowing keeps the term premium—and capital costs—higher for longer.

Tokio Marine can reinvest its large premium float at higher yields, increasing recurring investment income.