Tokio Marine Holdings (TMHD) is planning to merge its wholly owned life insurance subsidiaries, as part of its strategy to achieve sustainable growth in domestic life insurance business.

Merger of the two subsidiaries, Tokio Marine & Nichido Life Insurance (TMNL) and Tokio Marine & Nichido Financial Life Insurance Co (TMNFL), is subject to approval from the concerned regulators.

The proposed merger has been approved at the meeting of board of directors and will be effective from 1 October 2014.

The new company will unite the strengths and know-how of TMNL and TMNFL into one company, which will further promote the "customer-oriented life insurance business", by striving for management efficiency, keeping sound maintenance of in-force policies and maintaining financial soundness.

Post-merger, the integrated company will be rebranded as Tokio Marine & Nichido Life Insurance, and the integration will not affect the outstanding insurance contracts of TMNL and those of TMNFL.

In July, it was reported that the company is looking to acquire insurance business in areas, including life insurance, automobile coverage, reinsurance and asset management in Southeast Asia, to diversify its revenue sources.