TOKIO MARINE HOLDINGS, INC. December 23, 2019
Tokio Marine Holdings, Inc.
1-2-1 Marunouchi, Chiyoda-ku, Tokyo
Partial Divestment of Shares in the Egyptian Life Takaful Subsidiary
Tokio Marine Holdings, Inc. (President and Group CEO: Satoru Komiya, "TMHD") today announced the signing of a definitive agreement to sell 75% stake in Tokio Marine Egypt Family Takaful S.A.E. ("TMFT"), its wholly owned Egyptian Life Takaful(*1) subsidiary, to EFG Hermes Finance S.A.E. ("EFG") and GB Capital for Financial Investment S.A.E. ("GB") which are respectively subsidiaries of leading Egyptian business groups.
The divestment is expected to complete in the second quarter (July to September) of FY2020 subject to regulatory approvals, and both EFG and GB will own 37.5% of TMFT upon completion.
(*1) Takaful: Insurance based on Islamic law. The financials are separated into the policyholder account and the operator account, while the takaful company (the operator) runs/manages the policyholder account and receives fee in return as its major source of revenue.
1. Background of the divestment
Tokio Marine Group has operated life takaful business in Egypt since establishing TMFT in 2008. After reviewing future strategic options of the business, we have decided to sell 75% of the stake to EFG and GB and run the business as a joint venture.
Our Egyptian General Takaful subsidiary Tokio Marine Egypt General Takaful S.A.E. will not be affected by this transaction and will remain as a wholly owned subsidiary of Tokio Marine Group.
2. Overview of TMFT
(1) | Company name | Tokio Marine Egypt Family Takaful S.A.E. | ||||
(2) | Headquarters | Cairo, Egypt | ||||
(3) | Main business | Life takaful | ||||
(4) | Establishment | October, 2008 | ||||
(5) | Shareholders and | Tokio Marine Group 100.0% (of which Tokio Marine & Nichido | ||||
percentage of shareholding | Fire Insurance Co., Ltd. 99.99%) | |||||
(6) | Key financials of fiscal year ending June 30, 2019(*2) | |||||
Premium | 42 mil EGP (approx. 270 mil JPY) | |||||
Net profit after tax | ▲16 mil EGP (approx. ▲100 mil JPY) | |||||
Net assets | 127 mil EGP (approx. 830 mil JPY) | |||||
（*2）Figures in JPY are based on an exchange rate of 1 EGP=6.5 JPY | ||||||
3. Overview of the Buyer Groups | ||||||
(1) | Company name | EFG Hermes Holding S.A.E. | GB Auto S.A.E. | |||
(2) | Headquarters | Cairo, Egypt | Cairo, Egypt | |||
(3) | Main business | Financial business (investment | Distribution, repair and financing | |||
bank, micro finance etc.) | of auto and motor cycles etc. | |||||
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(4) | Year of Establishment | 1984 | 1999 |
(5) | Egyptian Exchange | Code: HRHO | Code: AUTO |
(EGX) code and year | (Constituent of EGX30) | (Constituent of EGX30) | |
of listing | Listed in 1999 | Listed in 2007 | |
(6) | Key consolidated financials of fiscal year ending December 31, 2018 | ||
Net assets | 14 bil EGP (approx. 91 bil JPY) | 5 bil EGP (approx. 34 bil JPY) | |
Total Assets | 29 bil EGP (approx. 189 bil JPY) | 21 bil EGP (approx. 137 bil JPY) |
4. Impact on Tokio Marine Group's financials
The impact of the divestment on Tokio Marine Group's financials is expected to be negligible.
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Tokio Marine Holdings Inc. published this content on 23 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 December 2019 14:55:08 UTC
