Japan's Tokio Marine Holdings Inc. is set to enter the African insurance market by acquiring 22.5% stakes in a pair of South Africa-based insurance companies, Hollard Holdings (Pty) Ltd. and Hollard International, the Nikkei Asia Review reported.
The Japanese insurer is in the final stage of talks to invest about US$359 million capital in the South African companies and plans to complete the transactions by the end of 2018, making the acquisitions equity-method subsidiaries, according to the report. With this investment, Tokio Marine reportedly aims to sell life and nonlife policies in 50 African countries and will target individuals and small to midsize businesses.
Hollard Holdings and Hollard International operate life and nonlife insurance business. Hollard Holdings operates in South Africa, while Hollard International provides services to six sub-Saharan countries, including Botswana and Mozambique.