Tuesday, May 22, 2018

Tokio Marine raises stake in Indian unit

Tokio Marine Holdings now holds 49%, the maximum legal limit, in its Indian joint venture after paying about US$392 million for an additional 23% stake.

The joint venture, IFFCO-Tokio General Insurance, is the fourth-largest private-sector player in the Indian market.

It was formed in 2000 with the Indian Farmers Fertiliser Cooperative and a subsidiary of Tokio Marine.

The Japanese insurer’s full-fledged foray into the Indian insurance market comes after the Indian government relaxed regulations in 2015, allowing foreign parties to take stakes up to 49% in its insurers.

With the increased stake, Tokio Marine said it will dispatch additional directors to the site to increase its sway over management at the unit.

India’s insurance market is worth more than US$20 billion in terms of premium income and is forecast to grow at an annual rate exceeding 10%.

Tokio Marine hopes to tap into this growing market.


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