Fairfax talks with Asian Alliance to buy general insurance biz progressing
Fairfax Financial Services Holdings Ltd (FFHL), a Canadian property and casualty insurer is in talks with Asian Alliance Insurance PLC (AAI) which is a Softlogic Holdings subsidiary, to buy its general insurance arm is still progressing, industry sources said. They said that AAI’s general insurance business is for sale and that negotiations have been underway for a few months. This has come on the back of insurance such as Janashakthi Insurance acquiring AIA General Insurance Lanka Limited last October.
Asian Alliance Insurance posted a growth for the first quarter of 2016 with Life insurance premiums topping the billion Rupee mark to reach Rs. 1.4 billion, with a growth of 48 per cent compared with the same period of the previous year – that is double the industry growth of 23 per cent for the first quarter of the 2016. ”First year premiums rose to Rs. 380 million growing by 46 per cent for the first quarter of 2016 compared to the same period of 2015, which is amongst the highest in the industry.
Motor insurance business was boosted by Click2Claim – Asia’s Innovation of the Year winner that clicked rapidly and grew 80 per cent. Overall General Insurance premiums rose 17 per cent to Rs. 526 million underlining the success of the strong retail focus of the company. Consolidated premiums for the quarter totalled Rs. 1.9 billion,” an AIA media release said. Asian Alliance Insurance PLC recorded Profit After Tax (PAT) of Rs. 267.2 million for the 1st Quarter of 2016 for Life Business whilst the combined PAT including its fully owned subsidiary Asian Alliance General Ltd was Rs. 212.4 million, it said.