Fairfax set to transform general insurance landscape in Sri Lanka
Tuesday, 10 February 2015 00:50
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Fairfax Asia Ltd. (Fairfax Asia), a wholly-owned subsidiary of Fairfax Financial Holdings Ltd. (Fairfax Financial), a Canadian-based financial services holding company, has entered the general insurance market in Sri Lanka through its acquisition of a controlling stake (78%) in Union Assurance General Ltd. (UAGL).
UAGL was incorporated in order to conduct the general insurance business previously transacted by Union Assurance Plc (UA Plc). The incorporation of UAGL is in line with the regulatory requirement for companies to separate their life and general insurance businesses into separate legal entities by February 2015.
Fairfax Financial, through its subsidiaries, has insurance and reinsurance operations worldwide. Its wholly-owned subsidiary, Fairfax Asia, operates in several markets in Asia, including India, Singapore, Hong Kong, China, Malaysia, Indonesia and Thailand.
UA Plc will continue to transact life insurance business. The remaining 22% of UAGL will be held by UA Plc in which company the controlling stake is held by John Keells Holdings Plc (JKH). JKH is one of the largest conglomerates in Sri Lanka with interests in several key sectors of the local economy.
JKH Deputy Chairman and Chairman UA Plc Ajit Gunewardene commented: “We are extremely pleased to be partnering with an organisation which has extensive experience in the general insurance sector both regionally and globally. We are confident that this partnership will help the general business of Union Assurance achieve a much stronger growth trajectory.”
Commenting on the acquisition, Fairfax Asia President Ramaswamy Athappan stated: “We are delighted to be entering the general insurance industry in Sri Lanka to work with such a dynamic and professional team and well-established brand. We look forward to working together and using our technical, product development and relationship management skills to take UAGL to higher levels of growth and profitability.”
UAGL will continue to deliver on the brand promise of trust, which is built on the pillars of convenience, transparency and respect, in all their dealings with customers and stakeholders. These qualities will be further strengthened by Fairfax Asia.
