Tokio Marine Holdings will forge a home insurance joint venture in Brazil with Caixa Seguridade, the insurance arm of Caixa, one of Brazil’s leading banks.
Grappling with rising losses at home, the Japanese property and casualty insurance behemoth is pumping in ¥39.5 billion (US$370 million) into the joint venture as it looks to leverage the growing market in Brazil.
This venture will provide fire insurance products along with insurance that will reimburse the policyholder’s loans in case of their demise.
Caixa owns about 70 percent shares in Brazil’s home financing market. Prior to that, the bank was involved in selling home loan insurance in collaboration with CNP Assurances, a French-based insurance firm.
In the joint pact, Tokio Marine will control 50.01 percent that also encompasses a two-decade bancassurance agreement. As per this treaty, the insurance products would be at Caixa’s outlets, utilising its broad network in the home loan market.
Tokio Marine, of late, has decided to foray overseas extensively to generate revenues to offset its setbacks at home caused by natural calamities.