Global financial services firm Allianz Group has completed the acquisition of Sri Lanka-based insurer Janashakthi General Insurance Ltd for about $106.4 million (LKR 16.4 billion).
Janashakthi Insurance PLC Managing Director Prakash Schaffter shakes hands with Allianz Insurance Lanka Managing Director Surekha Alles. Also present are Janashakthi Insurance PLC Director Ramesh Schaffter (left) and Allianz Asia Executive Board Member Zakri Khir. (Image:Daily Mirror)
In an announcement on Monday, the German insurance major said it sealed the buy after receiving all the necessary regulatory approvals and will now begin amalgamating the operations of both companies.
“This transaction brings together two highly complementary businesses for enhanced scale, competitiveness and service capabilities, while positioning Allianz as one of Sri Lanka’s largest general insurers and significantly accelerating its growth agenda in this market,” said the announcement.
After the deal, Allianz Insurance Lanka will be one of the country’s largest general insurers, with a market share of approximately 20 per cent. Further, with close to a million policyholders island-wide, the expanded client base represents a significant growth opportunity for Allianz in Sri Lanka.
Together with its 6 per cent share in the country’s life insurance market, the acquisition positions Allianz Lanka as one of the strongest protection leaders in the country. This supports Allianz’ strategic priorities of achieving market leadership positions and high-quality growth in the Asia Pacific region, Allianz said earlier this month while announcing the deal.
It had further added that Janashakthi will continue to focus on its life insurance portfolio in order to strengthen its presence in the Sri Lankan life insurance industry.
Janashakthi Insurance has been in Sri Lanka for over two decades and focuses on motor, fire and health protection for individuals and corporates. Meanwhile, Allianz with core businesses are insurance and asset management services over 80 million customers worldwide and is a leader in the German market in insurance sector.