ASIAN ALLIANCE INSURANCE PLC
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
Asian Alliance Insurance PLC (AAI) is a medium sized insurance company in Sri Lanka that offers life and non-life insurance. AAI is part of the SoftLogic Group, listed at Colombo Stock Exchange. AAI offers tailor-made insurance solutions to its customers. AAI is considered to be one of the fastest growing insurance companies in the country, ranked 5th in Sri Lanka's Life Premium market.
What is our funding objective?
Recently there have been several regulatory reforms in the insurance industry in Sri Lanka. This includes the requirement that composite insurers separate their life and non-life businesses early 2015. In addition, the Sri Lankan regulator is expected to replace current solvency regime from a rule based capital regime to a risk-based capital (RBC) regime by 2016. In order to ensure a smooth transition conform the regulatory changes and to remain competitive in the market AAI will work with a consultant. The consultant will support AAI to enhance its actuarial knowledge and further develop its product offerings over the coming 12 months.
Why do we fund this investment?
Sri Lanka remains heavily under-penetrated by insurance with a total premium/GDP ratio of just 1.09% (Fitch). It is expected that the outcome of this project will improve the access to (non) life insurances in Sri Lanka and can therefore count as inclusive development in the country. This is in line with FMO's strategy to increase financial inclusion through its investments.
More investments
| Date | Total FMO financing |
|---|---|
| 12/29/2020 | LKR 0.46 MLN |
- Website customer/investment
- http://www.asianalliance.lk
- Region
- Asia
- Country
- Sri Lanka
- Sector
- Financial Institutions
- Effective date
- 8/12/2015
- End date
- 8/3/2017
- Total FMO financing
- EUR 0.06 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C