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.
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Formerly | Asian Alliance Insurance (1999-2016) |
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Type | Public |
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ISIN | LK0314N00001 |
Industry | Insurance |
Founded | April 21, 1999 |
Headquarters | One Galle Face, , Sri Lanka |
Number of locations | 103 (2022) |
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Number of employees | 999 (2022) |
Parent | Softlogic Holdings |
Website | softlogiclife |
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]
Year | Ceylinco Life | Sri Lanka Insurance | Softlogic Life | AIA Life | Union Assurance | Others |
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2017 | 22.03 | 17.49 | 10.52 | 16.08 | 14.14 | 19.74 |
2018 | 22.18 | 16.45 | 12.46 | 15.87 | 14.00 | 19.04 |
2019 | 21.08 | 16.69 | 14.11 | 15.60 | 13.12 | 19.40 |
2020 | 21.43 | 18.70 | 15.20 | 13.64 | 12.73 | 18.30 |
2021 | 20.49 | 17.62 | 16.07 | 13.24 | 12.35 | 20.23 |
Source: Insurance Regulatory Commission of Sri Lanka, 2023 (p. 49)[17]
See also
References
- "Annual Report 2022" (PDF). cse.lk. Softlogic Life Insurance PLC. 2022. Retrieved 9 May 2023.
- 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.
- Country Report: Sri Lanka. 2000. p. 26. Retrieved 9 May 2023.
- "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.
- Antonio, Jithendra (14 July 2011). "Richard Pieris to establish insurance, finance arms". Daily Mirror. Wijeya Newspapers. Retrieved 9 May 2023 – via PressReader.
- "Richard Pieris accepts mandatory offer by Softlogic to acquire AAI ordinary shares". Daily FT. Wijeya Newspapers. 21 September 2011. Retrieved 9 May 2023.
- "Post-segregation IBSL licences 7 new insurance companies". Daily FT. Wijeya Newspapers. 2 January 2015. Retrieved 10 May 2023.
- "Sri Lanka's Asian Alliance general insurance unit goes to Fairfax". Economy Next. Echelon Media. 24 June 2016. Retrieved 10 May 2023.
- Zuhair, Zahara (27 October 2016). "Asian Alliance changes to Softlogic Life Insurance". Daily Mirror. Wijeya Newspapers. Retrieved 10 May 2023.
- "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.
- "Softlogic Life added to S&P SL20 Index". Daily FT. Wijeya Newspapers. 31 March 2022. Retrieved 11 May 2023.
- "LMD 100". lmd100.lk. Media Services. 2023. p. 72. Retrieved 11 May 2023.
- "Sri Lanka 100 2022" (PDF). brandirectory.com. Brand Finance. 2022. p. 15. Retrieved 11 May 2023.
- "Softlogic Life is now Sri Lanka's 2nd largest life insurer". adaderana.lk. Ada Derana. 15 August 2022. Retrieved 11 May 2023.
- "Speculation drives up Softlogic Life share price amidst heavy trading". Daily FT. Wijeya Newspapers. 17 January 2023. Retrieved 11 May 2023.
- "Softlogic Capital says evaluating bid received for Softlogic Life Insurance". Daily Mirror. Wijeya Newspapers. 17 February 2023. Retrieved 11 May 2023.
- "Annual Report 2021" (PDF). ircsl.lk. Insurance Regulatory Commission of Sri Lanka. 2023. p. 49. Retrieved 11 May 2023.