Edelweiss Tokio Life Insurance on Thursday announced an equity capital infusion of ₹670 crore from Edelweiss Financial Services and Tokio Marine to fund business expansion, develop its bancassurance channel, and explore inorganic growth opportunities. The company is a joint venture between Edelweiss Financial Services and Tokio Marine Holdings where Edelweiss Financial Services owns 51% and Tokio Marine owns the rest 49%. In February 2016, Edelweiss Tokio Life Insurance had received ₹527 crore in capital from Tokio Marine.
The fresh capital shows the long-term commitment by Tokio Marine and growth potential of Edelweiss Tokio Life Insurance. “This will take our solvency to above ₹800 crore of the required capital requirement to support 40-50% growth for the next four years,” said Dipak Mittal, MD of Edelweiss Life Insurance.
“We are evaluating inorganic opportunities. Currently, there’s no transaction in the advanced stage and if there is a need, the promoters will be willing to invest more capital.”
Edelweiss Tokio Life Insurance looks to expand the number of branches to 180 from 110.
“Insurance serves the dual purpose of mobilizing long term savings into investments, and providing protection,” said Rashesh Shah, chairman Edelweiss Group.
“With the increasing financialisation of savings acting as a significant growth driver for Life Insurance, Edelweiss Tokio Life has laid a strong foundation, and is well poised to take advantage of this growth opportunity.”
Source : The Economic Times
Date : 01-12-2017