Japanese Insurer Tokio Marine Secures Minority Interest in Igloo as TPA Revenues Surge
Japanese insurance heavyweight Tokio Marine has acquired a minority stake in Singaporean InsurTech startup Igloo, investing $5 million as it seeks to fortify its digital presence in Southeast Asia’s high-growth markets.
According to filings lodged with Singapore’s Accounting and Corporate Regulatory Authority (ACRA), Tokio Marine acquired 493,984 shares at $10.12 apiece. The transaction secures the insurer a 1.65% equity stake in Igloo (formerly Axinan), confirming earlier reporting by DealStreetAsia. The move places Tokio Marine on a capitalization table that already features prominent backers including Openspace Ventures, Cathay Innovations, Blue Orchard, and FinnFund.
Strategic Pivot to Indonesia
The investment underscores Tokio Marine’s aggressive strategy in Southeast Asia, in particular Indonesia, a market the insurer has identified as a priority. While the Japanese group has established a foothold in the country's property and general insurance sectors, it is now pivoting toward technology-driven and embedded insurance models via partnerships with digitally native players.
This transaction follows reports from September indicating Tokio Marine led a deferred funding round for Indonesian insurtech PasarPolis, estimated at $5 million. The dual investments highlight a growing trend of Japanese institutional capital flowing into Indonesia’s FinTech and InsurTech ecosystems.
Igloo, which operates across eight Southeast Asian markets, reports having facilitated over 600 million policies to date. Beyond its core offerings, the firm has diversified into climate adaptation insurance, deploying data-driven coverage for risks including floods and extreme weather. It is also replicating a joint-venture model established with Thailand’s JMT Network Service to launch fully digital insurance carriers in Indonesia and the Philippines.
Revenue Growth Amid Widening Losses
Despite strong top-line performance, Igloo faces continued pressure on its bottom line. Regulatory filings reveal that the company’s net loss widened by 11% year-on-year, growing from $19.66 million in 2023 to $21.8 million in 2024.
However, revenue momentum remains significant. Total revenue jumped 49% to $55.46 million, up from a restated $37.14 million the previous year. This surge was primarily fueled by its third-party administration (TPA) business, which saw revenues nearly triple to $39.72 million.
Management has signaled that the company expects to reach a breakeven point by early next year.
Igloo’s latest equity injection follows a December 2023 funding round that raised over $26 million, bringing its total equity funding since its 2016 inception to nearly $80 million. The company continues to vie for market share in a competitive regional landscape that includes rivals PasarPolis, Qoala, and Singlife.
Norbert Gehrke
