European financial institutions to invest in AAI
Indunil Hewage
FMO Senior Investment Officer Arno De Vette and DEG
Investment Manager Thomas Kronsbein exchanges the agreements
with Softlogic Holdings/ Asian Alliance Insurance Chairman
Ashok Pathirage. Picture by Roshan Pitipana |
Europe’s leading development financial institutions, Deutsche
Investitions - Und Entwicklungsgesellschaft Mbh of Germany (DEG) and
Netherlandse Financierings –Maatschappij Voor Ontwikkelingslanden N.V of
Netherlands (FMO), yesterday signed an agreement with Asian Alliance
Insurance (AAI), to invest in AAI . Consequent to this agreement, DEG
and FMO would each also purchase 38% shares of AAI at a value of Rs 1.8
billion in the early part of next year.
AAI which undertakes both life and general insurance businesses in
Sri Lanka, became part of Sri Lanka’s most diversified Softlogic Group
in the latter part of 2011 and the well developed life insurance segment
of the company, has posted a significant performance and had been ranked
among the top five players in the industry as at September 2012.
Commenting on the signing, Softlogic Holdings and Asian Alliance
Insurance Chairman Ashok Pathirage, said that the company was drawing a
comprehensive general insurance strategy which would be complemented by
the other sectors of the Softlogic Company. We have been evaluating
eligible international partners to share the ownership of AAI and we are
very much delighted to partner with DEG and FMO. Our strategic
collaboration with DEG and FMO would enable AAI to access international
expertise and strategy, thereby providing immense benefits to all our
stake holders.
The value proposition being created in the General Insurance, has
seen the doubling of revenue, compared to the previous year, with
exciting prospects to be realized in Health insurance, with the Asiri
Group of Hospitals owned by the Softlogic Group and the distribution of
insurance solutions via the Softlogic retail network of over 150 stores,
throughout the length and breadth of Sri Lanka. AAI was trying to forge
new dimensions in the local insurance arena in the near future, which
would definitely elevate the profile of the Asian Alliance Insurance.
Michael Bornmann , a member of DEG’s Management Board, mentioned that
we were convinced that post-conflict Sri Lanka, has immense scope and
the local insurance industry had great prospects in the medium term. We
expect that the strong economy to deliver higher disposable income that
in return would lead to significant demand for financial services,
including insurance. We were also confident that this partnership would
create an outstanding value in a number of areas.
AAI commenced its operations in Sri Lanka in December 1999 and today,
the company has grown from strength to strength, to become one of Sri
Lanka’s leading players in the insurance industry. |