|January 8, 2003
|MSI Enters Non-Life Insurance Market in India
through Joint Venture with Indian Conglomerate
|Mitsui Sumitomo Insurance Co., Ltd. ("MSI"/Hiroyuki Uemura, President) has decided equity participation in Cholamandalam General Insurance Company Limited ("Cholamandalam") headed by Arun Agarwal, CEO, under the wing of Murugappa Group, Indian conglomerate.
MSI will start underwriting operation in India on April 1, 2003.
MSI has been dispatching three representatives in New Delhi, Mumbai and Bangalore, and have been providing advisory activities including the rates and conditions to the Japanese corporate clients, liaisoning with local insurance companies. Now, MSI, through Japan-Korean division set up within the Joint Venture, enables to directly underwrite and sell non-life insurance products and upgrade its service and support to the Japanese and Korean Interests in India.
| ||Name : Cholamandalam-MS General Insurance Company Limited
Paid-in capital : 1.42 billion Indian rupees (JPY 3.55 billion yen @ 2.5 JPY/ Indian Rupee)
Arun Agarwal, CEO
MSI will dispatch 4 (four) officers including 1 (one) executive vice president.
Head office :
Chennai City, India (formerly known as Madras)
("TIAM House" 5th Floor 72 Rajaji Salai, Chennai 600 001. India)
Office network :
twelve branches including New Delhi, Mumbai, Bangalore, and Calcutta (planned to be set up at the end of March 2003)
Shareholders : 26% held by MSI which is a maximum shareholding allowed under the current Indian laws and regulations
74% held by Murugappa Group
Staff and employees : 140 (planned to be stationed at the end of March 2003)
|2. Purpose of Joint Venture and Background
| ||*Following opening branches in Shanghai, China and Seoul, Korea in May 2001 and October 2002, respectively, MSI has come to a conclusion that MSI must offer high quality services in growing Indian market as an important part of MSI Asian strategy.
*Under the current Indian legal framework, foreign insurance company shall not be allowed to open a branch. Therefore, MSI had sought for an Indian partner in creating a joint venture, and agreed equity participation with Murugappa Group who has a strong nationwide operational network under its steady and rational management control.
*MSI believes there is a big business chance in India's growing non-life insurance market, and will not only underwrite the Japanese and Korean Interests in India but also plan to do the same toward the good local and other foreign interest.
*MSI enables to reinforce and almost complete Asian operational network by adding thereto this Joint Venture operations which cover growing Indian Non-Life Insurance Market at 10% per annum.
|3. Target Direct Written Premium
| ||We set up a target direct written premium of about JPY10.6 billion in the fifth year.