Allianz is all set to take over the general insurance subsidiary of Janashakthi Insurance in Sri Lanka. All the formalities of this deal, which is worth LKR 16.4 billion, will be finished by the end of the quarter.
Bankbazaar Singapore – February 5, 2018
SINGAPORE: One of the world’s largest general insurance providers, Allianz, is all set to acquire the general insurance subsidiary of Janashakthi Insurance in Sri Lanka. Janashakthi is one of Sri Lanka’s largest insurers. The deal, which is worth LKR 16.4 billion or $106.9 million, has not yet been approved by the regulatory authority, but is expected to be finished by the first quarter of 2018.
With this acquisition, Allianz will become one of Sri Lanka’s largest general insurance providers with a market share close to 20%. This deal will reinforce Allianz’s service capabilities and customer reach in Sri Lanka.
Allianz added that a deal of such scale reveals its confidence in the Sri Lankan market, which witnessed an annual growth of 12.1% between 2010 and 2016. This rate of growth is expected to increase even further to 12.5% by 2020. According to Allianz’s chief for Asia-Pacific, George Sartorel, the deal is the perfect opportunity to enhance its presence in Sri Lanka.
Going forward, Janashakthi Insurance will focus on its life insurance arm and the sustained development of Sri Lanka’s life insurance industry.