Allianz, a global financial services company, has entered into an agreement with Janashakthi Insurance PLC to acquire 100% of its subsidiary Janashakthi General Insurance Limited (JGIL) for Rs. 16.4 billion (EUR 85.9 million). The transaction is subject to regulatory approval and is expected to be completed in the first quarter of this year. This acquisition makes Allianz Insurance Lanka (Allianz Lanka) one of the country’s largest general insurers, with a market share of approximately 20%.
The consideration represents a multiple of 2.2x JGIL’s adjusted net asset value in 2017.
Allianz’s Regional CEO for Asia Pacific, George Sartorel said, “This transaction provides a highly attractive opportunity to transform our market presence in Sri Lanka, while accelerating our growth agenda in the Asia Pacific region.
“We are greatly impressed with the JGIL team, and believe the expanded business provides a strong foundation from which to drive continued innovation and excellence for our customers,” he said.
Managing Director, Allianz Insurance Lanka, Surekha Alles said,“We’re excited about our future ahead, and look forward to welcoming Janashakthi customers and employees to the Allianz family. Together, we will be well-placed to seize growth opportunities in Sri Lanka, and generate enduring benefits for our customers and stakeholders.”
Managing Director, Janashakthi Insurance, Prakash Schaffter said, “I am convinced that this amalgamation with Allianz represents the natural progression of JGIL’s evolution from a small, home grown general insurance business to a leader in the industry, while reflecting the strength of the business we’ve built over the past 23 years.”Becoming part of Allianz’s larger organisation also provides many new opportunities for our employees and our customers. We share many of the same values, and we are happy to see our commitment to customer service excellence and belief in driving process enhancement and digitalisation reflected in Allianz’s priorities and strengths,” he said.
Janashakthi Insurance has been operating in Sri Lanka for over 23 years with a focus on motor, fire and health protection for individuals and corporates.
This transaction also represents one of the largest investments into Sri Lanka, demonstrating Allianz’s confidence in this market.