Japan based Tokio Marine Holding Inc would be open to increasing stake in Edelweiss Tokio Life Insurance if the Indian regulation for Foreign Direct Investment (FDI) in insurance is relaxed.
"It is the understanding that the company would be open to increasing its stake to 49% in the joint venture if Indian norms allow," said Jun Hemmi, executive director, Edelweiss Tokio Life Insurance on the sidelines of a press conference here to announce the opening of the life insurance firm's Bangalore branch. Presently, Tokio Marine holds 26% in the Indian life insurance joint venture with Edelweiss Capital.
Edelweiss Tokio Life Insurance started operations in June 2011 with a paid up capital of Rs 550 crore. "The company does not need any capital infusion for the next 3-4 years for solvency purpose," said Jun Hemmi. As per regulations, an insurance company needs Rs 100 crore to commence operations. The company has 38 branches across the country, with Bangalore being the latest and it plans to open 6 more branches before the end of the financial year.
The firm expects to see Rs 50 crore worth of new business premium till March 2013 as against Rs 12 crore in Mach 2012, said Yash Mohan Prasad, chief agency officer. It has seen the highest growth in new business premium among the private sector insurers with new premium standing at Rs 14 crore in April to October period, compared to Rs 1 crore in same period last year.
The company market share stood at 0.2% (by way of premium mobilisation) as on end of October 2012, which the company expects to see at 3% over the next 5-7 years. Among the private sector insurer, the company's market share stood at 2.5%.
Edelweiss Tokio Life Insurance offers nine policies for the individuals and 2 group plans with three traditional products in the pipeline. It has sold 10,000 individual plans so far with traditional plans contributing 95% to the sales volume.
