USD 30mn invested in Softlogic Life’s growth by Finnfund, NorFund and Munich Re

Softlogic Life Insurance PLC announced the inking of landmark deals with Development Financial Institutions; Finnish Fund for Industrial Cooperation Ltd – Finnfund and The Norwegian Investment Fund for Developing Countries. Norfund and financial have collectively signed a USD 15Mn Tier II Subordinated Debt transaction with the Company on August 24, that will provide funding to further develop the business objectives of the company.

Norfund and Finnfund are impact investors funded by the governments of Norway and Finland and private capital markets whose objectives are to fund sustainable development through responsible and profitable businesses across the globe. What makes the transactions even more significant are that they are being executed amidst the ongoing COVID-19 pandemic that has impacted the entire world.

Softlogic Life also concluded a Financial Reinsurance transaction in March 2020 of USD 15Mn with Münchener Rückversicherungs-Gesellschaft – MunichRe, one of the top providers of reinsurance, primary insurance, and insurance-related risk solutions in the world based on the top quality portfolio of the company. This arrangement is viewed as an innovative market leading transaction in the South Asian Life and Health Reinsurance arena.

Softlogic Life, Sri Lanka’s third-largest life insurance entity is on a growth trajectory and these milestones transactions will further 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 March 31, 2020, doubling market share within the past five years and covering more than a million lives. In 2019 Softlogic Life Insurance grew by 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. We like to think of it as an endorsement that we have done something special,” said 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 we 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.”