AIA Insurance Lanka has signed an agreement with Janashakthi Insurance to sell its general insurance business in Sri Lanka for around $22.8m (SRs3.2bn).
The acquisition of AIA General Insurance Lanka will expand Janashakthi’s presence in the sector in Sri Lanka by 6.5% to 17.5%, the company’s Insurance founder Chandra Schaffter said.
The deal is expected to be completed by the end of this month.
AIA Sri Lanka’s CEO Shah Rouf was quoted by The Nation as saying: "The formal requirement of an industry wide segregation of life and general insurance businesses by the Insurance Board of Sri Lanka at the start of this year provided the backdrop for AIA’s decision.
"At the end of last year, we did a business review and decided to continue to focus our strategy on realising the significant growth opportunities in the Sri Lankan life insurance market given that AIA Group is the 2nd largest listed life insurer in the world."
AIA has acquired Aviva NDB Insurance in September 2012, and operates 53 branches in the country. Its general insurance business offers products in motor, home protection, title and travel.
Janashakthi General Insurance is one of the leading general insurers in Sri Lanka, which has gross written premiums of around SRs7.5bn.
Image: Janashakthi Insurance to acquire AIA General Insurance Lanka. Photo: courtesy of stockimages/ FreeDigitalPhotos.net.