LAHORE: DEG (Deutsche Investitions- und Entwicklungsgesellschaft mbH), a wholly owned subsidiary of Germany’s KfW Group, has re-entered into Pakistan’s insurance market by acquiring 19.9 per cent shareholding worth $3 million (Rs466.5m) in TPL Insurance, a subsidiary of TPL Corp Ltd.
A bourse filing on Thursday said the transaction will be executed subject to board and regulatory approvals. DEG’s will be the first investment in an insurance company in recent times in Pakistan.
As per details, this foreign collaboration will help TPL Insurance to develop its agriculture and micro-insurance segments, thereby increasing the penetration of insurance in Pakistan. TPL Insurance intends to further develop its digital assets and bring efficiencies through the digitisation of business processes. The equity injection will also improve the financial strength and underwriting capability of TPL Insurance.
With the experience and expertise of DEG as a major institutional investor, according to the filing, the TPL Insurance will greatly benefit in terms of custom shaped solutions in all respectable areas including but not limited to best corporate governance practices, business support, risk management and environmental and social matters.
The acquisition follows TPL Insurance’s announcement made in June last year to the Pakistan Stock Exchange on DEG’s interest in acquiring an equity stake in the company subject to approval from the Board of Directors, Shareholders, Securities and Exchange Commission of Pakistan and other regulatory bodies.
Published in Dawn, April 23rd, 2021
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