Saturday, November 18, 2017

Tokio Marine to pare down stake in Malaysia business

Tokio Marine is set to pare down its shareholding in its life insurance business in Malaysia.

The move is part of the Japanese insurer’s compliance with Bank Negara Malaysia’s ruling for foreign insurers to pare down their stake to 70% in local life insurers in the country.

Tokio Marine is looking at three options, according to sources.

These include divesting 30% stake in the life insurance business to local parties, creating a holding company in Malaysia and then selling 30% of that holding company, and listing the new holding company on Bursa Malaysia.

Tokio Marine started out its general underwriting business in Malaysia in 1957 and established its Malaysian branch operations in 1974.

Its life insurance operations in Malaysia had about M$490.5 million (US$114 million) gross earned premium revenue in the first half of 2016.

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