Munich Re has concluded a $15 million reinsurance transaction with Softlogic Life Insurance PLC, a life insurer based in Sri Lanka.
The deal, which Softlogic Life views as an innovative step for the South Asian Life and Health Reinsurance arena, was competed in March 2020.
The company also announced deals with Development Financial Institutions, including Finnish Fund for Industrial Cooperation Ltd (Finnfund) and The Norwegian Investment Fund for Developing Countries (Norfund).
Norfund and Finnfund collectively signed a $15 million Tier II Subordinated Debt transaction will provide funding for SoftLogic Life.
The investors are funded by the Governments of Norway and Finland and private capital markets whose objectives are to fund sustainable development through responsible and profitable businesses globally.
“These investments by NorFund, Finnfund and MunichRe are a testament to the solid work we have put into building Softlogic Life into a formidable business in Sri Lanka’s insurance industry,” said Ashok Pathirage, Chairman of Softlogic Life Insurance PLC.
“MunichRe enjoys a long standing relationship of over fifteen years with Softlogic Life and has introduced a number of product initiatives that have performed well for our partnership,” added Srinivasa Rao, Managing Director, Life and Health, Munich Re India Branch.
“This Financial Reinsurance transaction heralds the next generation of cooperation where we are pleased to be part of an exciting future.”
Softlogic Life is Sri Lanka’s third-largest life insurance company and owned a 16.2% share of the national market as of March 31, 2020, more than double what it owned five years ago.
“We are always keen to develop our operations by utilizing international expertise and together with Leapfrog Investments who are shareholders of the Company we are continuously assessing possibilities to improve our capabilities even further,” Pathirage continued.
“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. We are proud to state that 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.”
