Moneycontrol Be a Pro
Get App
Last Updated : Jun 09, 2015 04:42 PM IST | Source: PTI

Foreign partner to up stake to 49% in Edelweiss: Tokio Life

Japanese insurer Tokio Marine will hike its stake to 49 percent in its life insurance joint venture with Edelweiss Group and is expected to infuse around Rs 500 crore in additional capital.


Japanese insurer Tokio Marine will hike its stake to 49 percent in its life insurance joint venture with Edelweiss Group and is expected to infuse around Rs 500 crore in additional capital.


Tokio Marine Holdings Inc, which owns 26 percent in Edelweiss-Tokio Life, became the fourth overseas firm after the English major Bupa in Max, the French financial powerhouse Axa in Bharti's life venture and the Dutch firm Aegon in Religare, to announce its decision to increase the stake in domestic partner to 49 percent.


Tokio Marine has filed an application with the Foreign Investment Promotion Board for hiking the stake to 49 percent in Edelweiss-Tokio Life, BSE was informed today.

Close

"Tokio's decision to hike its stake to 49 percent from 26 percent in Edelweiss-Tokio Life will strengthen our relationship.


The company is likely to get a capital infusion of Rs 400-500 crore. We expect the fund flow over next three four months," Edelweiss Group Chairman and Chief Executive Rashesh Shah told PTI.


"While forming the company three years ago, we had in principle agreed to take this life insurance venture to 51:49 level as and when the law permits it and we are happy that the new Insurance Act has allowed it to happen now," Shah added.


Many companies have started the process of diluting stake in favour of their foreign partner as Parliament in March passed the new insurance law that allows up to 49 percent FDI in the sector from the existing 26 percent.


According to the data collated by the Life Insurance Council, premium income of Edelweiss-Tokio Life grew 52.56 percent to Rs 122.64 crore in 2015 fiscal from Rs 80.39 crore the previous fiscal, even though the number of its policies dipped 11.38 percent to 29,243 from 32,999 a year ago.


The Edelweiss-Tokio started operations in 2011 and has 59 branches across 49 cities.



The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on May 29, 2015 08:29 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant
Make every wish come true
10% CashBack on Apparel
10% CashBack on Electronics
Swipe & Win iPhone 11 every hour