April 26, 2019
Tokio Marine Holdings, Inc.
2-1 Marunouchi 1-Chome,Chiyoda-ku, Tokyo
TSE code number: 8766
Application for a Joint Venture General Insurance Company in Myanmar
Tokio Marine Holdings, Inc. (President and Group CEO: Tsuyoshi Nagano, "TMHD") announced that it has agreed to apply for a license to form a joint venture general insurance company with Grand Guardian Insurance Holding Public Company Limited ("GGIH") in order to enter the general insurance market in Myanmar through acquiring 35% stake of Grand Guardian General Insurance Company Limited ("GGGI").
1.Background of the acquisition
(1)Tokio Marine Group has been focusing on expanding its international business as the driving force of the Group's growth strategy. To achieve this objective, Tokio Marine Group continues to pursue strategic M&A initiatives in both developed and emerging markets. We have significantly expanded our presence in the developed markets through a series of acquisitions over the last 10 years.
(2)As for the emerging markets, their present contribution to the total profit of our international business remains at around 10%. In markets with high growth potential where we aspire to significantly expand into, we will accelerate our strategic M&A initiatives for the further growth and diversification of our global portfolio, which is stated as one of the key initiatives of our current Mid-Term Business Plan "To Be a Good Company 2020" announced in May 2018.
In line with this strategy, we have proceeded with the acquisition of Safety Insurance (a Thailand general insurance company) as well as the acquisition of 22.5% stake of Hollard Holdings and Hollard International (Insurance group in South Africa and adjacent countries) last year.
(3)Based on this background, Tokio Marine Group acquired an underwriting license in Myanmar's Thilawa Economic Zone in May 2015 and has been providing insurance coverage mainly to our Japanese clients operating within this Zone. In July 2017, Tokio Marine Group concluded the agreement for technical collaboration with GGGI which laid the foundation for our close relationship. In January 2019, GGGI, with technical support provided by Tokio Marine Group, became the first insurance company in Myanmar to provide Ocean Marine Cargo Insurance to the local market. Now, TMHD has agreed to apply for a license to form a joint venture company with GGIH in order to enter the general insurance market in Myanmar through acquiring 35% stake of GGGI by Tokio Marine & Nichido Fire Insurance Co., Ltd.
2.Overview of GGGI
Company Name | Grand Guardian General Insurance Company Limited |
("GGGI") | |
Main Location | Yangon, Myanmar |
Paid up Capital | 41 Billion Kyat (JPY 3 Billion) (March 2019) |
Gross Written | 24 Billion Kyat(JPY 1.7 Billion) (March 2019) |
Premium | |
Established | 2013 |
Number of employees | 535 (as of March 2019) |
Number of Branches | 21(as of March 2019) |
Products | Automobile, Fire and Overseas Marine Cargo, etc |
GGGI is the leading private insurance company in | |
Myanmar. | |
Business Model | GGGI has the largest agent network in Myanmar (over 750 |
agents) and is expanding insurance business through | |
providing mainly Automobile and Fire insurance to the | |
local market. | |
Attachments
- Original document
- Permalink
Disclaimer
Tokio Marine Holdings Inc. published this content on 26 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 26 April 2019 06:12:15 UTC