Fairfax Asia has entered into an agreement to purchase 78% interest in the general insurance business of Sri Lankan insurer Union Assurance.
Financial terms of the transaction have not been disclosed; however, the deal is anticipated to complete by the first quarter of 2015, following satisfaction of customary closing conditions, including the successful completion of due diligence along with regulatory and court approvals.
Colombo-based Union Assurance operates as a life and general insurer in Sri Lanka. Its general insurance business gross written premiums stood at nearly $41.4m in 2013.
Upon completion of the transaction, the general insurance business of Union Assurance will join the Fairfax Asia group under the leadership of its CEO, Ramaswamy Athappan.
Fairfax chairman and CEO Prem Watsa said: "We are excited to have the general insurance business of Union Assurance join Fairfax and we look forward to being partners with John Keells Holdings in Sri Lanka.
"The general insurance business of Union Assurance is a market leader in the Sri Lankan insurance sector and this is a great opportunity for us to expand our operations in the region."
Founded in 1985, Fairfax through its subsidiaries offers property and casualty insurance and reinsurance and investment management services to its customers.
Image: Fairfax Asia agrees to purchase 78% stake in general insurance business Union Assurance. RAK National Insurance. Photo: courtesy ofadamr /freedigitalphotos.net.