Fairfax Asia has signed an agreement to acquire Sri Lankan insurer Asian Alliance General Insurance (AAGI).


Subject to customary closing conditions, the deal is expected to complete in the fourth quarter of this year.

AAGI provides general insurance products to its customers in Sri Lanka. The company generated about $14.1m gross written premiums in the last year.

Once the deal concludes, AAGI will be included in the Union Assurance General and operates under the leadership of Fairfax Asia group CEO Ramaswamy Athappan.

As part of the deal, Fairfax Asia will also sign a distribution agreement to allow Softlogic Holdings to provide its insurance products to the customers.

Fairfax chairman and CEO Prem Watsa said: "We are thrilled to expand the general insurance business carried on by Fairfax Asia in Sri Lanka with the acquisition of Asian Alliance General Insurance."

"The addition of AAGI and the new distribution arrangement with the Softlogic group represents a tremendous opportunity for us to continue to expand our operations in the region."

Recently, the company also agreed to acquire 80% stake in Indonesian insurer PT Asuransi Multi Artha Guna Tbk (AMAG) from PT Paninvest Tbk and its affiliates.

AMAG provides general insurance products for its customers in Indonesia. The company generated about $65m gross written premiums in the last year.

Through its subsidiaries, Fairfax provides property and casualty insurance, reinsurance and investment management services.

Image: Fairfax Asia to acquire insurer Asian Alliance General Insurance. Photo: courtesy of stockimages / FreeDigitalPhotos.net.