Tuesday, April 16, 2024

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Five bidders keen to acquire SLIC life and general insurance businesses

By: Staff Writer

March 10, Colombo (LNW): SLIC transferred its insurance operation to two new fully owned subsidiaries – Sri Lanka Insurance Corporation General Limited and Sri Lanka Insurance Corporation Life Limited – on 1 February 2024.

 SLIC is now a holding company with no direct insurance operations, while the two new subsidiaries will be regulated by the Insurance Regulatory Commission of Sri Lanka

Leading global professional services firm Alvarez & Marsal (A&M) has been appointed by the Government of Sri Lanka’s State-Owned Enterprise Restructuring Unit (SRU) to advise on the divestiture of the Government’s shareholding in the state-owned Sri Lanka Insurance Corporation (SLIC).

A&M has been mandated in partnership with Capital Alliance (CAL), the Colombo-headquartered investment bank, to manage the divestment of all, or part of, the shareholding of SLIC, one of seven state-owned enterprises currently being targeted for divestiture of government ownership by the SRU.

The mandate is part of the government’s overall reform program to enhance competitiveness, productivity and efficiency across the economy and to assist in the country’s socio-economic development and fiscal consolidation efforts.

The Request for Qualification (RfQ) for the sale of the segregated life and general insurance business of Sri Lanka Insurance Corporation (SLIC) has attracted five bidders, four of which are local firms.

For Sri Lanka Insurance Corporation Life Ltd., those who responded to RfQ are LIC (Lanka) Ltd., Union Assurance PLC and Asiri Hospital Holdings PLC.

For Sri Lanka Insurance Corporation General Ltd., the respondents are Fairfirst Insurance Ltd., and Euro Exim Bank Ltd., a global financial institution with Head Office in St. Lucia and Representative Office in London.

The Government on 26 January, via international and local media called for RfQ from potential investors for the divestiture of its shares in the two insurance entities. The deadline for submission of proposals was on Wednesday.

The RfQs received were considered by the Opening Committee appointed by the Special Cabinet Appointed Negotiation Committee. The SOE Restructuring Unit said the RfQs will be evaluated as per the Special Guidelines on Divestiture of State-Owned Enterprises approved by the Cabinet of Ministers in July 2023.

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