Tokio Marine Holdings has completed its
acquisition of Delphi Financial Group, a US life and property and
casualty insurance group, in a deal costing approximately
$2.7bn.
Delphi has now joined the Tokio Marine group
as a wholly owned subsidiary of Tokio Marine & Nichido Fire
Insurance (TMNF).
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As part of the financing for this acquisition,
TMNF will receive a loan of $1.3bn, of which $780m will come from
the Japan Bank for International Cooperation’s US
dollar-denominated fund created in response to yen
appreciation.
This financing is also intended to minimise
foreign exchange fluctuation risk of TMHD’s consolidated balance
sheet.
In January 2012, Life Insurance International
reported that Tokio Marine Holdings’ acquisition of Delphi
Financial Group represents a significant extension of the company’s
bid to counter stalling growth in its Japanese home market, by
gaining exposure to the US life market.
In a separate development, Tokio Marine
Holdings has releases its consolidated business results for the
year ended 31 March 2012.
This revealed that the net income for its
domestic life insurance business was 6.8bn yen ($85.7m) for the
year ended 31 March 2012 compared to 5.2bn yen during the same
period in the previous year. This represented an increase of
30.3%.
TMNF’s policies in force increased from
396.7bn for the year ended 31 March 2011 compared to 419.4bn for
the year 31 March 2011, an increase of 5.7%.
