Softlogic Life Insurance

Softlogic Life Insurance PLC, formerly known as Asian Alliance Insurance, is an insurance company in Sri Lanka. The company was founded in 1999 as Asian Alliance Insurance, a joint venture between Asia Capital PLC and Richard Pieris & Company. Softlogic Holdings and its subsidiary Softlogic Capital PLC acquired a controlling stake in the Asian Alliance Insurance in 2011 for LKR3.3 billion. The company segregated its life and non-life insurance businesses and then divested its non-life insurance to Fairfax Financial. The company changed its name in 2016 to Softlogic Life Insurance. The company is a constituent of the S&P Sri Lanka 20 Index. Softlogic Life is one of the LMD 100 companies in Sri Lanka. The company is also ranked among the 100 most valuable brands in the country.

Softlogic Life Insurance PLC
FormerlyAsian Alliance Insurance (1999-2016)
TypePublic
ISINLK0314N00001
IndustryInsurance
FoundedApril 21, 1999 (1999-04-21)
HeadquartersOne Galle Face,
Colombo
,
Sri Lanka
Number of locations
103 (2022)
Key people
  • Ashok Pathirage (Chairman)
  • Iftikar Ahamed (Managing Director)
RevenueIncrease LKR25.525 billion (2022)
Increase LKR4.030 billion (2022)
Increase LKR2.683 billion (2022)
Total assetsIncrease LKR48.248 billion (2022)
Total equityIncrease LKR10.873 billion (2022)
Owners
Number of employees
999 (2022)
ParentSoftlogic Holdings
Websitesoftlogiclife.lk
Footnotes / references
[1]

History

Asian Alliance Insurance was founded in 1999 as a joint venture between Asia Capital PLC and Richard Pieris & Company.[2][3] Softlogic Holdings and its subsidiary Softlogic Capital PLC acquired a 73.5% of stake in Asian Alliance Insurance for LKR3.3 billion in 2011. Asia Capital PLC was the seller.[4] When the announcement of Softlogic's acquisition came to light, Richard Pieris moved to incorporate a finance company and an insurance company. Richard Pieris also planned to move its insurance business out of Asian Alliance Insurance to the new venture.[5] Richard Pieris accepted Softlogic Capital's mandatory offer and divested its 25% stake in Asian Alliance Insurance.[6] Subsequently, Softlogic reduced its stake in the company by divesting 19% of the stake each to the development finance companies DEG and FMO for LKR1.8 billion in 2012.[2]

The industry regulator, the Insurance Board of Sri Lanka, stipulated that insurance companies should segregate their life and non-life insurance businesses in 2015. Newly incorporated Asian Alliance General Insurance received the licence to operate in the non-life insurance sector.[7] Softlogic sold Asian Alliance General Insurance to Fairfax Financial in 2016 for LKR1.1 billion.[8] In the same year, the company was renamed Softlogic Life Insurance.[9] Softlogic Life Insurance was featured in Forbes Asia's Best Under a Billion list in 2019.[10]

Operations

Softlogic Life Insurance was added to the S&P Sri Lanka 20 Index when an ad hoc index rebalancing occurred due to Commercial Leasing and Finance merging with LOLC Finance in March 2022.[11] Softlogic Life is one of the LMD 100 companies in Sri Lanka. The company was ranked 60th in the 2021/22 edition of the list. LMD 100 is an annual list of listed companies in Sri Lanka by revenue.[12] Brand Finance estimated the brand value of Softlogic Life Insurance to be LKR2,382 million in 2022, placing the company in the 44th in the brand value rankings in the country.[13]

In 2022, the company recorded a market share of 17.1%, placing the company in second place among life insurance companies by gross written premiums.[14] When the company's share price rose by 136%, Colombo Stock Exchange inquired the company twice about the unusual price movement.[15] In a stock market disclosure, Softlogic Capital PLC stated that the company is considering a bid for Softlogic Life Insurance. The disclosure did not name the bidder. AIA Insurance Lanka Limited, the Sri Lankan subsidiary of AIA Group, had shown interest in the company.[16]

Gross written premium market share of life insurance companies of Sri Lanka
YearCeylinco LifeSri Lanka InsuranceSoftlogic LifeAIA LifeUnion AssuranceOthers
201722.0317.4910.5216.0814.1419.74
201822.1816.4512.4615.8714.0019.04
201921.0816.6914.1115.6013.1219.40
202021.4318.7015.2013.6412.7318.30
202120.4917.6216.0713.2412.3520.23

Source: Insurance Regulatory Commission of Sri Lanka, 2023 (p. 49)[17]

See also

References
  1. "Annual Report 2022" (PDF). cse.lk. Softlogic Life Insurance PLC. 2022. Retrieved 9 May 2023.
  2. Fazali, Rashika (21 December 2012). "DEG and FMO to buy 38% stake of Asian Alliance Insurance for Rs. 1.8 b". Daily FT. Wijeya Newspapers. Retrieved 9 May 2023.
  3. Country Report: Sri Lanka. 2000. p. 26. Retrieved 9 May 2023.
  4. "Softlogic Group to buy 73.5% of Asian Alliance for Rs. 3.3 b". Daily FT. Wijeya Newspapers. 13 July 2011. Retrieved 9 May 2023.
  5. Antonio, Jithendra (14 July 2011). "Richard Pieris to establish insurance, finance arms". Daily Mirror. Wijeya Newspapers. Retrieved 9 May 2023 – via PressReader.
  6. "Richard Pieris accepts mandatory offer by Softlogic to acquire AAI ordinary shares". Daily FT. Wijeya Newspapers. 21 September 2011. Retrieved 9 May 2023.
  7. "Post-segregation IBSL licences 7 new insurance companies". Daily FT. Wijeya Newspapers. 2 January 2015. Retrieved 10 May 2023.
  8. "Sri Lanka's Asian Alliance general insurance unit goes to Fairfax". Economy Next. Echelon Media. 24 June 2016. Retrieved 10 May 2023.
  9. Zuhair, Zahara (27 October 2016). "Asian Alliance changes to Softlogic Life Insurance". Daily Mirror. Wijeya Newspapers. Retrieved 10 May 2023.
  10. "Softlogic Life, only SL company to be featured in Forbes "Asia's Best Under A Billion 2019" list". The Sunday Times. Wijeya Newspapers. 13 October 2019. Retrieved 10 May 2023.
  11. "Softlogic Life added to S&P SL20 Index". Daily FT. Wijeya Newspapers. 31 March 2022. Retrieved 11 May 2023.
  12. "LMD 100". lmd100.lk. Media Services. 2023. p. 72. Retrieved 11 May 2023.
  13. "Sri Lanka 100 2022" (PDF). brandirectory.com. Brand Finance. 2022. p. 15. Retrieved 11 May 2023.
  14. "Softlogic Life is now Sri Lanka's 2nd largest life insurer". adaderana.lk. Ada Derana. 15 August 2022. Retrieved 11 May 2023.
  15. "Speculation drives up Softlogic Life share price amidst heavy trading". Daily FT. Wijeya Newspapers. 17 January 2023. Retrieved 11 May 2023.
  16. "Softlogic Capital says evaluating bid received for Softlogic Life Insurance". Daily Mirror. Wijeya Newspapers. 17 February 2023. Retrieved 11 May 2023.
  17. "Annual Report 2021" (PDF). ircsl.lk. Insurance Regulatory Commission of Sri Lanka. 2023. p. 49. Retrieved 11 May 2023.
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