Tokio Marine Holdings has increased its shareholding in Asuransi Tokio Marine Indonesia (TMI) from 60% to 80% through its wholly owned subsidiary, Tokio Marine Asia.
The stake was increased through the acquisition of a 20% stake from joint venture partner, Asuransi Jasa Indonesia (Jasindo), at the price of IDR509bn (approximately $33m). The deal was completed on 23 November 2022 after obtaining local regulatory approval.
In 1973, Tokio Marine started its non-life insurance business in Indonesia, working with Jasindo, one of the largest state-owned non-life insurance companies in Indonesia, by providing insurance products and services to Japanese companies doing business in Indonesia. In 1975, a joint venture called Asuransi Jayasraya was established with Jasindo. After Tokio Marine took a majority position in 1990, the venture’s name was changed to Asuransi Tokio Marine Indonesia.
Leveraging Tokio Marine's strong branding and financial position, TMI has been growing steadily through the expansion of its branch network in Indonesia. Currently, TMI is ranked 13th biggest in the market in terms of Gross Written Premium and is one of the most profitable insurers in Indonesia.
In line with Tokio Marine's international business strategy, the increase in the stake in TMI will help the Japanese insurance giant to achieve sustainable growth and expand profits, as well as enhance the group’s diversified business portfolio through capturing growth opportunities in emerging countries.