January 29 2016, 13.24 PM IST || Pocket News Alert
Edelweiss Tokio Life Insurance receives IRDA approval to increase foreign stake to 49%. Tokio Marine to infuse over INR.525 crore to fund expansion plans
Mumbai, January 28, 2016: Edelweiss Tokio Life Insurance Ltd., among India's fastest growing life insurance company has received IRDA approval to increase Tokio Marine’s stake to 49% in the Joint venture. This will be a primary investment by Tokio Marine in the joint venture, a first within the Life insurance space. The increase in Tokio Marine’s stake will lead to a foreign direct investment of over INR. 525 crore.
Edelweiss Tokio Life Insurance is a joint venture between Edelweiss Financial Services, one of India's leading diversified Financial Services companies and Tokio Marine Holdings Inc., a global leader with over 135 years of experience in the insurance business. Tokio Marine currently owns 26% in Edelweiss Tokio Life Insurance, with Edelweiss owning the remainder.
Mr. Rashesh Shah, Chairman and CEO, Edelweiss Group, said, “Insurance plays an especially important role in India, in itself a vastly underpenetrated market. Our strong demographics coupled with rising life expectancy and poor social security will continue to spur demand for insurance. Additionally, growing household savings will flow into long term investments in turn fuelling economic growth. With a global leader as a partner, new capital infusion and an expanding country wide distribution network, Edelweiss Tokio Life is well placed to cater to the insurance needs of the Indian consumer.”
Mr. Tsuyoshi Nagano, President and CEO, Tokio Marine Holdings, said, “We see the Indian economy equalling the GDP size of Japan in the next 10 years, making India one of the largest growth markets for the Tokio Marine group. Along with our joint venture partner Edelweiss, we hope to further contribute to increasing the insurance penetration as well as aim to create a company that is respected among customers.”
“The Increased capitalization will reinforce our commitment to build a high quality customer oriented business. Our need based selling approach, superior product design and infrastructure will be further strengthened to serve customers both in the physical and digital platform while significantly easing the distribution process,” said Mr. Deepak Mittal, MD & CEO, Edelweiss Tokio Life Insurance.
Since inception in 2011, in a short span of four years, the Company has expanded its distribution footprint across agency and alternate channels and has a nationwide presence with its 71 branches across India with over 14,000 Personal Financial Advisors. Edelweiss Tokio Life Insurance has gained industry wide recognition for its fund management with Morning star rating all its individual ULIP funds the highest rating of 5 Star as on September 30, 2015.
