Edelweiss Tokio Life Insurance has received permission from regulator Irdai to raise Tokio Marine’s stake to 49 percent in the joint venture, that will lead to an infusion of over Rs 525 crore from the overseas partner.
Edelweiss Tokio Life Insurance is basically a joint venture between Edelweiss Financial Services and Japan’s Tokio Marine Holdings Inc.
“This will be a primary investment by Tokio Marine in the joint venture, at first within the life insurance space. The increase in Tokio Marine’s stake will lead to a foreign direct investment of over Rs 525 crore,” a company statement said.
Currently, Edelweiss Financial Services have a 74 per cent stake whereas Tokio Marine owns 26 percent in the joint venture. “The growing household savings will flow into long-term investments, in turn, fueling economic growth. With a global leader as a partner, new capital infusion and an expanding countrywide distribution network, Edelweiss Tokio Life is well placed to cater to the insurance needs of the Indian consumer”, said Rashesh Shah, Chairman and CEO, Edelweiss Group.
Edelweiss Tokio Life Insurance MD & CEO Deepak Mittal said the improved capitalization will strengthen the company’s promise to construct 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,” he said.