Project detail - ASIAN ALLIANCE INSURANCE PLC

ASIAN ALLIANCE INSURANCE PLC

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Who is our client

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.

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 we fund this project

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.

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Date Total FMO financing
6/23/2016 LKR 0.46 MLN
Website client
http://www.asianalliance.lk
Region
Asia
Country
Sri Lanka
Sector
Financial Institutions
Signing date
8/12/2015
Total FMO financing
EUR 0.06 MLN
Fund
FMO
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