Tokio Marine to Enter Mortgage Insurance Biz in Brazil

Economy

Tokyo, Jan. 8 (Jiji Press)--Japanese nonlife insurer Tokio Marine Holdings Inc. <8766> will establish a joint venture in Brazil to underwrite mortgage and homeowner insurance.

Tokio Marine said Tuesday it has reached an agreement on the establishment with Caixa Seguridade Participacoes SA, an insurance holding unit of Brazilian state-owned lender Caixa Economica Federal.

The Tokio Marine group will invest 1.52 billion real, or 39.5 billion yen, in the joint venture and acquire a 50.01 pct stake.

To be based in Sao Paulo, the joint venture will start operations by February 2021.

The move is part of the Tokio Marine group's strategy to disperse operational risks in Brazil, where its business centers on automobile insurance.

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Jiji Press