The investment from Finnfund, Norfund and MunichRe will help Softlogic Life to expand its life insurance business in Sri Lanka
Sri Lankan insurance company Softlogic Life Insurance has secured $30m (LKR5.6bn) from Finnish Fund for Industrial Cooperation (Finnfund), the Norwegian Investment Fund for Developing Countries (Norfund) and German insurer MunichRe, to pursue its business objectives.
Softlogic Life had secured $15m in debt from Finnfund and Norfund last month. The insurer also said that it secured $15m from MunichRe in this March in the form of a financial reinsurance transaction.
The insurance firm stated that the timing of the transaction is significant, as it was carried out during the ongoing Covid-19 pandemic that has impacted the entire world.
Softlogic Life Insurance chairman Ashok Pathirage said: “These investments by Norfund, Finnfund and MunichRe are a testament to the solid work we have put into building Softlogic Life into a formidable business in Sri Lanka’s insurance industry. We like to think of it as an endorsement that we have done something special.
“We are always keen to develop our operations by utilising international expertise and together with Leapfrog Investments who are shareholders of the company we are continuously assessing possibilities to improve our capabilities even further.
“We remain fully confident of Sri Lanka’s growth prospects and see the low penetration in the life insurance industry as a great opportunity for future growth.”
Softlogic Life is the third-largest life insurer in Sri Lanka with a 16.2% market share
Claimed to be the third-largest life insurance company in Sri Lanka, Softlogic Life has a market share of 16.2% and is on a growth trajectory and the transactions are expected to further expand its prospects for life insurance in the country.
In the last five years, Softlogic had doubled its market share, covering more than a million lives. Last year, it claims to have issued more than 240,000 policies, accounting for a third of the market and it grew by 25%, while the average industry growth stood at 11%.
Munich Re spokesperson and Munich Re India Branch life and health managing director Srinivasa Rao said: “MunichRe enjoys a long-standing relationship of over fifteen years with Softlogic Life and has introduced a number of product initiatives that have performed well for our partnership.
“This Financial Reinsurance transaction heralds the next generation of cooperation where we are pleased to be part of an exciting future.”