Issue link: http://www.e-digitaleditions.com/i/826230
TMR 2016 Annual Repor t | 02 As we continue to build on the strengths of the long term strategy we have in place at Tokio Millennium Re (TMR), I am pleased to report a successful delivery on many fronts in 2016 despite challenging market conditions. FURTHER STRENGTHENING OUR BALANCE SHEET Our net income for 2016 was USD 120.7 million, which is an increase to our bottom line of 12% compared to 2015. The main drivers behind this strong performance were not only our consistent, analytical and prudent approach to underwriting and reserving, but also favorable investment income returns and our continued investment in our third party capital strategy. We applied this same rigor to our internal operations resulting KPCUNKIJVFGETGCUGKPQWTCFOKPKUVTCVKXGGZRGPUGTCVKQ1WTTGUWNVUCNUQDGPGƒVGFHTQO favorable external factors with below average catastrophe losses and gains from foreign exchange. #HWNNCPCN[UKUQHQWTƒPCPEKCNUKUUGVHQTVJQPVJGHQNNQYKPIRCIGU OPTIMISATION OF OUR BUSINESS PORTFOLIO AND CONTINUED LARGE CAPACITY OFFERING TO CUSTOMERS After several years of growing our portfolio, we successfully delivered on a plan to optimise rather than continuous growth given the current soft market conditions. 1WTRTKQTKV[PQYKUVQECTGHWNN[OCPCIGVJGRTQƒVCDKNKV[QHQWTDQQMQHDWUKPGUU through robust and analytical risk selection, while simultaneously continuing our HQEWUQPTKUMFKXGTUKƒECVKQP We successfully reduced portfolio volatility through proactive risk management and further deployment of our third party capital strategy. Our ability to offer large capacities to our customers remains a priority despite the current market conditions. We also FGRNQ[GFUKIPKƒECPVTGUQWTEGUVQUWRRQTVVJGNCWPEJQHCVGEJPQNQI[RNCVHQTOHQTWUG with our capital markets partners, offering TMR and its partners the ability to more GHƒEKGPVN[OCVEJEGFGFTKUMYKVJECRKVCN M E S S A G E F R O M T H E C E O Delivering on our commitments to customers is a core value for TMR.