Tokio Marine : Progress Regarding Establishment of Insurance Joint Venture in BrazilPDF
January 04, 2021 at 09:30 pm EST
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January 5, 2021
Tokio Marine Holdings, Inc.
1-2-1 Marunouchi, Chiyoda-ku, Tokyo, 100-0005, Japan
Progress Regarding Establishment of Insurance Joint Venture in Brazil
Further to our announcement of "Agreement to Establish Insurance Joint Venture in Brazil" dated January 7, 2020, Tokio Marine Holdings, Inc. (President and Group CEO: Satoru Komiya, "TMHD") is pleased to announce that its subsidiary, Tokio Marine Seguradora S.A. ("TMSR"), has completed the establishment of the Joint Venture.
Completion of establishment of the Joint Venture and commencement of operations
As announced on January 7, 2020, TMSR and Caixa Seguridade Participações S.A., an insurance holding subsidiary of Caixa Econômica Federal, a Brazilian state-owned bank and a leading institution in the Brazilian mortgage industry, agreed to establish a Joint Venture to underwrite mortgage and homeowners insurance.
Following the satisfaction of all conditions of the transaction, including regulatory approvals from JFSA and SUSEP on December 15, 2020, TMSR completed the establishment of the Joint Venture by acquiring 50.01% of its common shares by a third-party capital raise on January 4, 2021.
The Joint Venture is expected to begin full-scale operations in February, 2021. TMHD is expected to further diversify its insurance business portfolio in Brazil as well as grow and stabilize revenue through the Joint Venture.
Overview of Joint Venture(*)
(1)
Company name
XS3 Seguros S.A.
(2)
Location of the head office
Sao Paulo (Brazil)
(Rua Desembargador Eliseu Guilherme, 84, Sao
Paulo, SP, BRAZIL )
(3)
CEO/Representative director
CEO, Marco Antonio da Silva Barros
(4)
Main business activities
Insurance company
(5)
Capital
BRL 66.67 million
(6)
Date of establishment
January 4, 2021
(7)
Major shareholders (%, voting
TOKIO MARINE SEGURADORA S.A.: 50.01%
rights base)
CAIXA HOLDING SECURITÁRIA S.A.: 49.99%
(8)
Relationship with TMHD
No notable capital or management or business
relationship between the Joint Venture and TMHD
or our affiliates. TMSR owns 50.01% of the Joint
Venture's common shares and appoints twoboard
members.
1
【Figure of Capital Relationship】
CAIXA ECONÔMICA
TMHD
FEDERAL
100%
100%
CAIXA SEGURIDADE
Tokio Marine & Nichido Fire
Insurance Co., Ltd.
100%
98.53%
CAIXA HOLDING
TMSR
SECURITÁRIA
Common Shares：49.99%
Common Shares：50.01%
Non-voting Shares：100%
Joint Venture:
XS3 Seguros S.A.
Some items which were disclosed as "To be determined" or "subject to change" in our announcement on January 7, 2020 have been decided and are underlined in this announcement.
3. Impact on financial results of TMHD
The establishment of the Joint Venture is expected to have limited impact on Tokio Marine group's consolidated business performance.
2
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Tokio Marine Holdings Inc. published this content on 05 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 January 2021 02:29:06 UTC
Tokio Marine Holdings, Inc. is a holding company organized around 3 areas of activity:
- non life insurance (50.3% of net sales);
- life insurance (14.2%);
- other (1.2%): primarily financial services.
The remaining sales (34.3%) concerns the international insurance activities.
TOKIO MARINE HOLDINGS, INC. 
