Tokio Marine Holdings Inc. is contemplating a sale of its life insurance coverage enterprise in Southeast Asia that could possibly be valued at about $1 billion in a deal, in response to individuals aware of the matter, because the Japanese insurer seems to deal with its core operations.
The Tokyo-listed agency is working with an adviser to gauge investor curiosity in its life insurance coverage models in Indonesia, Malaysia, Singapore and Thailand, the individuals mentioned, who requested to not be recognized as the knowledge is personal. Tokio Marine prefers to discover a purchaser for the entire belongings, although it’s additionally contemplating a piecemeal deal, the individuals mentioned.
A proper sale course of can start within the coming months, in response to one of many individuals. Concerns are at an early stage and Tokio Marine can resolve to maintain the belongings for longer, the individuals mentioned.
Tokio Marine at all times considers disciplined M&A and evaluations its enterprise portfolio on the whole to enhance profitability and obtain sustainable development, its spokesperson mentioned in response to a Bloomberg Information question. Nothing has been determined in the meanwhile, the spokesperson mentioned, declining to remark additional.
Tokio Marine was based in 1879 as Japan’s first non-life insurance coverage firm, in response to its web site. The corporate started direct underwriting operations in London, Paris and New York a 12 months later. It now provides each life and non-life insurance coverage and operates in 46 international locations past Japan. Worldwide enterprise accounts for 54% of its earnings.
Tokio Marine runs eight property and casualty insurance coverage firms and 5 life insurers in eight international locations in Asia outdoors Japan, its web site reveals. Internet written premium of the life enterprise in Asia excluding Japan elevated by 38.9% to about ¥103 billion ($767 million) within the quarter ended December 2022. The life operation posted a ¥900 million revenue in the identical quarter, accounting for about 7% of Tokio Marine’s earnings within the area excluding Japan.
–With help from Nao Sano.
{Photograph}: Pedestrians cross street in entrance of the Tokio Marine Holdings headquarters in Tokyo. Picture: Kiyoshi Ota/Bloomberg
Copyright 2023 Bloomberg.
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