Norfund, Finnfund and MunichRe have invested in total USD 30 millon in Softlogic Life Insurance PLC.
Press release, 2nd September 2020:
Softlogic Life Insurance PLC is pleased to announce the inking of landmark deals with Development Financial Institutions; Finnfund and Norfund who signed a USD 15Mn Tier II Subordinated Debt transaction with the company on 24th August 2020 that will provide funding to further develop the business objectives of the company. The transactions are even more significant as they are being executed amidst the ongoing COVID-19 pandemic that has impacted the entire world.
A fast growing market
Softlogic Life is Sri Lanka’s third-largest life insurance entity. These milestone transactions amplify the excellent prospects available for the life insurance industry in Sri Lanka. The Company’s fast paced growth has brought a share of 16.2% of the market as at 31st March 2020, doubling market share within the past five years, covering more than a million lives. The Company in 2019 grew 25% versus an industry growth of 11% issuing 247,755 policies and selling the highest number of policies accounting for 33% of the market.
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.Ashok Pathirage, Chairman of Softlogic Life Insurance PLC
“We are always keen to develop our operations by utilizing international expertise and together with Leapfrog Investments who are shareholders of the Company 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. 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, ” said Pathirage.
Norfund’s first investment in the insurance sector
The investment marks Norfund’s first investments in Sri Lanka’s insurance industry. Softlogic Life is pioneering inclusive life and health insurance solutions in Sri Lanka and has today over half million low- and mid-income customers. By offering affordable insurance to emerging customers, the company helps to increase resilience in unexpected situations.
“Norfund invests in financial institutions to strengthen their ability to contribute to increased access to capital for companies and previous unbanked people. Softlogic Life is a great fit with our objective to create jobs and improve lives by investing in businesses that drive sustainable development.”Fay Chetna, Regional Director Asia, Norfund.
About Softlogic Life
Softlogic Life Insurance PLC is a subsidiary of Softlogic Capital PLC and is part of the Softlogic Group, which is recognised as one of Sri Lanka’s most diversified and fastest-growing conglomerates with interests in Healthcare, Retail, ICT, Leisure, Automobiles and Financial Services. Significant stakeholders in the company include global investors Leapfrog Investments.
Softlogic Life recently made it to the Forbes Asia’s ‘Best Under A Billion 2019’ list, a business ranking which spotlights Asia’s 200 top-performing listed companies with less than US$ 1 Billion in revenue with consistent top and bottom-line growth. Softlogic Life is the only company in Sri Lanka and one of the two insurance companies in the Asian region to achieve this momentous feat.