Allianz to acquire Sri Lankan general insurer
Insurance heavyweight Allianz has signed an settlement with Sri Lankan group Janashakthi Insurance PLC to acquire its general insurance coverage subsidiary.
The deal, which can see Allianz purchase 100% of Janashakthi General Insurance Ltd for LKR16.four billion (US$106.9 million), is topic to regulatory approval and is anticipated to full within the first quarter of 2018.
If the acquisition pushes by means of, it would make Allianz’s Sri Lankan operation one of many nation’s largest general insurers, with a market share of round 20%. According to Allianz, the deal will strengthen Allianz Lanka’s buyer attain and repair capabilities; whereas Janashakthi’s general insurance coverage portfolio enhances Allianz Lanka’s present enterprise and represents a strategic match throughout each company and retail strains.
The insurance coverage big added that an funding of this magnitude demonstrates its confidence within the Sri Lankan general insurance coverage market, which had a compound annual progress charge of 12.1% between 2010 and 2016. This is anticipated to improve to 12.5% by 2020, due to enhancing commerce and macroeconomic circumstances, in addition to elevated insurance coverage penetration.
George Sartorel, Allianz’s regional CEO for Asia-Pacific, stated that the transaction is a “highly attractive” alternative to increase its market presence within the nation and its progress agenda within the area.
After the acquisition, Janashakthi Insurance PLC will focus on its life insurance coverage enterprise and the continued improvement of Sri Lanka’s life insurance coverage sector.