Tokio Marine considers US$1 billion South-east Asia life unit sale

TOKIO Marine Holdings is considering a sale of its life insurance business in South-east Asia that could be valued at about US$1 billion in a deal, said people familiar with the matter, as the Japanese insurer looks to focus on its core operations.

The Tokyo-listed firm is working with an adviser to gauge investor interest in its life insurance units in Indonesia, Malaysia, Singapore and Thailand, said the sources, who asked not to be identified as the information is private.

Tokio Marine prefers to find a buyer for all the assets, though it is also considering a piecemeal deal, they added. 

A formal sale process can commence in the coming months, according to one of the sources. Considerations are at an early stage, and Tokio Marine can decide to keep the assets for longer, they said.

Tokio Marine always considers disciplined mergers and acquisitions, and reviews its business portfolio in general to improve profitability and achieve sustainable growth, its spokesperson said in response to a Bloomberg News query.

Nothing has been decided at the moment, they added, declining to comment further.

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Tokio Marine was founded in 1879 as Japan’s first non-life insurance company, according to its website. The company began direct underwriting operations in London, Paris and New York a year later.

It now offers both life and non-life insurance and operates in 46 countries beyond Japan. International business accounts for 54 per cent of its profits.

Tokio Marine runs eight property and casualty insurance companies and five life insurers in eight countries in Asia outside Japan, its website shows. Net written premium of the life business in Asia excluding Japan increased by 38.9 per cent to about 103 billion yen (S$1 billion) in the quarter ended December 2022.

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The life operation posted a 900 million yen profit in the same quarter, accounting for about 7 per cent of Tokio Marine’s profits in the region excluding Japan. BLOOMBERG