Domestic brokerage firm Edelweiss Capital today said it has entered into an agreement with Japan based Tokio Marine Holdings to jointly float a life insurance company with an initial investment of Rs 550 crore.
The company has entered into an agreement with Tokio Marine Holdings to establish a joint venture (JV) company - Edelweiss Tokio Life Insurance, Edelweiss Capital Ltd (ECL) said in a filing to the Bombay Stock Exchange.
Edelweiss and Tokio Marine Holdings would make an initial investment of Rs 550 crore in the first phase and the proposed JV would approach the insurance regulator IRDA to obtain the life insurance license, the filing added.
“Tokio Marine intends to support the operation of the new company with its strong insurance expertise, and ECL expects to contribute through its strong brand recognition and broad client base,” the company said.
Tokio Marine Holdings is engaged in core life and non-life insurance and associate business activities.
The new company would contribute to the enhancement of size and profitability of Tokio Marine Group’s international insurance business as well as the sound growth of the Indian life insurance sector by providing high quality products and services that meet customer needs, it said.
Shares of Edelweiss Capital were trading at Rs 488.45 on the BSE, up 1.53 per cent from its previous close.