AIA parts way with its non life operations

AIA Insurance Lanka has announced the sale of its non life subsidiary to Janashakthi Insurance (JINS) for the amount of 3.2 billion LKR (22.8 million USD). AIA’s decision was motivated by the amendment of the insurance code which is due next January 1.

By this date, the insurers will be required to separate out their life and non life operations into two distinct insurance companies. AIA preferred to focus on the life insurance business and to cede its non life subsidiary.

JINS is the third non life insurer on the local market. Following this acquisition, JINS’ market share has gone up from 11% to 17.5% for this class of business.