Edelweiss-Tokio joint venture to start life insurance operations in 6-8 months
24 Nov 2009
Edelweiss Capital and Japanese insurance major Tokio Marine Holdings (TMH) have entered into an agreement to form a joint venture and launch life insurance operations.
The new venture has an initial capital base of Rs550 crore and may see capital infusion only in the event of the government hiking the FDI cap in insurance sector to 49 per cent from the existing 26 per cent. Rashesh Shah, chairman, Edelweiss Capital said the company hoped the sum of Rs550 crore would take care of the needs for the first few years.
To start off the company is looking at a product mix comprising Ulip, endowment, variable annuity with retirement planning and capital guaranteed products.
According to Hiroshi Endo, managing director and member of the management committee, TMH the venture would start with a project team comprising 40-50 people for the first year of operations after getting an approval from Insurance Regulatory & Development Authority (Irda).
The company has plans to enter more segments in the Indian market in future he added.
Endo said that the company was looking at both routes, organic and inorganic to expand its business in the Indian market.
