Japan’s Sompo Holdings is evaluating opportunities to expand its presence in India following recent insurance sector reforms, with the insurer describing the market as one of its strategically important priorities globally, The Economic Times reported, citing Kenneth Reilly, CEO, Insurance, Asia Pacific.
Speaking to the publication, Reilly said the government’s decision to raise the foreign direct investment (FDI) limit in the insurance sector to 100%, together with its Insurance for All by 2047 vision and broader regulatory reforms, has created a more encouraging environment for international insurers.
Sompo operates in India through Universal Sompo General Insurance (USGI), where it holds a 34.61% stake alongside Indian Bank, Dabur Investment Corporation and Karnataka Bank, according to the report.
“We are extremely encouraged with the developments over the last few years,” Reilly said, adding that the changes could allow foreign insurers to play a more active role in supporting the government’s ambitions.
While Reilly stopped short of outlining plans to increase the group’s investment or ownership, he said Sompo would continue working with its partners to support the insurer’s future growth.
Universal Sompo has remained profitable and paid dividends in recent years despite receiving no fresh shareholder capital for several years.
Reilly said Sompo remained committed to ensuring the insurer was equipped for future growth, with the Japanese group looking to contribute expertise in underwriting, product development and risk management.
Sompo is also assessing opportunities beyond general insurance, including life insurance, digital services and nursing care, according to the report. It has already partnered with the National Skill Development Corporation International to train nursing professionals in India for work in Japan.
