Softlogic Life Insurance PLC inked landmark deals with Development Financial Institutions, the Finnish Fund for Industrial Cooperation Ltd (Finnfund) and the Norwegian Investment Fund for Developing Countries (Norfund) recently.
They have collectively signed a USD 15 mn Tier II Subordinated Debt transaction which will provide funding to further develop the business objectives of the company.
Norfund and Finnfund are impact investors funded by the Governments of Norway and Finland and private capital markets whose objectives are to fund sustainable development through responsible and profitable businesses across the globe. What makes the transactions even more significant are that they are being executed amidst the ongoing Covid-19 pandemic that has impacted the entire world.
In March, Softlogic Life also concluded a Financial Reinsurance transaction of USD ,15 mn with Münchener Rückversicherungs-Gesellschaft – MunichRe, a provider of reinsurance, primary insurance, and insurance-related risk solutions in the world, based on the top quality portfolio of the company.
“These investments by NorFund, Finnfund and MunichReare is a testament to the solid work we have put into building Softlogic Life into a formidable business in Sri Lanka’s insurance industry. We like to think of it as an endorsement that we have done something special,” said Chairman of SoftlogicLife Insurance, Ashok Pathirage. “We are always keen to develop our operations by utilising international expertise and together with Leapfrog Investments who are shareholders of the Company we are continuously assessing possibilities to improve our capabilities even further. We remain fully confident of Sri Lanka’s growth prospects and see the low penetration in the life insurance industry as a great opportunity for future growth.
“During 2019 one in every three life insurance policies sold in the market was from Softlogic Life,which is a great testament to the customer segments that we cover and the extent of our product diversification,” he said.
The investment marks one of NorFund and Finnfund’s first investments in Sri Lanka’s insurance industry, where, like other developing markets across Asia, they will be looking to provide expansion capital to sustainable businesses like Softlogic Life in the financial sector.
Regional Director Asia, Norfund, Fay Chetnakarnkul said, “Norfund invests in financial institutions to strengthen their ability to contribute to increased access to capital for companies and previous unbanked people.”
Investment Manager, Finnfund, Ulla-Maija Rantapuska said, “Softlogic Life’s leadership team has over the years consistently delivered, and together, we hope to continue contributing to its growth journey.”