Through its fully owned subsidiary, Tokio Marine Asia, Tokio Marine Holdings has increased its ownership stake in Asuransi Tokio Marine Indonesia (TMI) from 60% to 80%.
The stake was raised by purchasing a 20% stake from the joint venture partner, Asuransi Jasa Indonesia (Jasindo), for IDR509 billion (roughly $33 million). The transaction was finalized on November 23, 2022, with local regulatory approval.
Tokio Marine established its non-life insurance business in Indonesia in 1973 by partnering with Jasindo, one of the country's largest state-owned non-life insurance providers, to offer insurance services and products to Japanese companies conducting business there. Jasindo and Asuransi Jayasraya founded a joint partnership in 1975. Asuransi Tokio Marine Indonesia became the venture's name after Tokio Marine acquired a majority stake in it in 1990.
Through the expansion of its branch network in Indonesia, TMI has been progressively expanding by capitalizing on Tokio Marine's strong brand recognition and solid financial standing. TMI, one of Indonesia's most successful insurers, is currently the 13th largest insurer in the market by Gross Written Premium.
According to Tokio Marine's international business strategy, increasing its stake in TMI will enable the Japanese insurance behemoth to increase profits, achieve sustainable growth, and diversify its business portfolio by seizing growth opportunities in developing nations.
