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

Opinion

Editorial

X post facto
Updated 19 Apr, 2024

X post facto

Our decision-makers should realise the harm they are causing.
Insufficient inquiry
19 Apr, 2024

Insufficient inquiry

UNLESS the state is honest about the mistakes its functionaries have made, we will be doomed to repeat our follies....
Melting glaciers
19 Apr, 2024

Melting glaciers

AFTER several rain-related deaths in KP in recent days, the Provincial Disaster Management Authority has sprung into...
IMF’s projections
Updated 18 Apr, 2024

IMF’s projections

The problems are well-known and the country is aware of what is needed to stabilise the economy; the challenge is follow-through and implementation.
Hepatitis crisis
18 Apr, 2024

Hepatitis crisis

THE sheer scale of the crisis is staggering. A new WHO report flags Pakistan as the country with the highest number...
Never-ending suffering
18 Apr, 2024

Never-ending suffering

OVER the weekend, the world witnessed an intense spectacle when Iran launched its drone-and-missile barrage against...