Tokio Marine Holdings of Japan will expand its participation in the Indian market by increasing its stake in a local joint venture from 26% to the legal limit of 49% through an investment of INR25.3 billion (US$392 million).

The property & casualty insurance powerhouse will also send several of its directors to India as part of its increased control of joint venture IFFCO-Tokio General Insurance and with the aim of taking advantage of the local insurance industry’s double-digit annual growth rate and premium income of over US$20 billion.

While Japanese firms have had holdings in Indian insurers for quite some time, this will be the first instance one will raise its stake to the maximum legal amount, reports Nikkei. From two representatives on the board, Tokio Marine will have five directors after the additional investment.

IFFCO-Tokio General Insurance is currently the fourth-largest privately owned insurer in its market. It was founded in 2000 as a joint venture between the Indian Farmers Fertilizer Cooperative and Tokio Marine. Motor insurance makes up half of the company’s policies, followed by crop insurance.

The insurer has over 600 branches, mostly in rural areas and smaller cities, but Tokio Marine has announced plans to expand into larger urban settlements to target the middle class.


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