Edelweiss Tokio Life Insurance has received approval from regulator Irdai to increase Tokio Marine's stake to 49 per cent in the joint venture, which will lead to infusion of over Rs 525 crore from the foreign partner.
Edelweiss Tokio Life Insurance is 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, a 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 holds 74 per cent stake while Tokio Marine owns 26 per cent in the joint venture.
"The 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", said Rashesh Shah, Chairman and CEO, Edelweiss Group.
Edelweiss Tokio Life Insurance MD & CEO Deepak Mittal said the increased capitalisation will reinforce company's 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," he said.
On March 23 last year, the government notified the hike in foreign direct investment (FDI) cap to 49 per cent from 26 per cent.
As many as 10 insurance companies have applied for regulatory clearances to bring in foreign investment of Rs 6,192 crore, as per government data in December.
According to Insurance Regulatory and Development Authority of India (Irdai), the total FDI in insurance sector as on March 31, 2015, was about Rs 8,031 crore.
