Edelweiss in life insurance JV with Tokio Marine

Mumbai, Nov. 23 -- Edelweiss Capital, a leading diversified financial services company, will be setting up a life insurance company with Japan headquartered Tokio Marine Holdings, Inc. The new company will be called Edelweiss Tokio Life Insurance. They have earmarked Rs 550 crore for Phase-I of the venture.

With this, there will be 23 insurance players in India.

Edelweiss would own 74 per cent of the Edelweiss Tokio Life Insurance (ETLI), while Tokio Marine owns the remaining 26 per cent. "Capital would not be a constraint for our growth. We have good retail earning and equity base," said Rashesh Shah, chairman of Edelweiss Capital. Indian insurance market is one of the fastest growing in the world. With nearly Rs 2 lakh crore premium, insurance industry plays a pivotal role in channelling household saving into long-term investments. "We will approach the Insurance Regulatory and Development Authority (IRDA) for necessary sanctions. The ETLI would be operational within 8-12 months," said Shah.