AIA Chief bullish on Sri Lanka

Tuesday, 30 October 2012 00:32 - - {{hitsCtrl.values.hits}}

Asian giant AIA Group last week expressed its bullish sentiments and outlook on Sri Lanka, reaffirming commitment to grow the business as well as develop the industry following the takeover of Aviva NDB Insurance.

The $ 119 billion asset rich AIA Group’s Chief Executive and President Mark Tucker, who made a whistle-stop visit to Colombo on Friday, said the leader in Asian Life insurance business sees an emphatic take off in the economy and insurance market in post-war Sri Lanka.

“Before entering a new market we do an in-depth study. Post-war Sri Lanka has enormous potential to spark a take off in the economy and the insurance industry. So we are excited to be here as the future scope is immense. We believe in the future of Sri Lanka and committed to develop the insurance industry and serve existing and future customers better,” Tucker told journalists.

He said at present the Life insurance penetration is only 11% and “in this we see a major opportunity for personal protection solutions. Per capita income in Sri Lanka is on the rise too. With a higher disposal income and the right awareness as opposed to pricing, Life insurance penetration will grow and AIA is best positioned to serve this growing demand,” the AIA Chief emphasised.

In a $ 109 million (Rs. 14 billion)deal, AIA has signed an agreement to acquire the majority 92.3% stake in Aviva NDB Insurance, the country’s second largest player in Life insurance and fifth biggest in General business.

“We found Aviva Insurance as a good opportunity given the quality of its business, the strong management team and the network of agents,” Tucker said, adding that the formal entry into Sri Lanka is the first since it ventured into India in the early 2000 and the first major acquisition since going public in 2010 with the world’s biggest IPO at that time.

AIA boasts of a history of over 90 years in the Asia Pacific region and in most markets out of a total of 15, it has become the leader in life insurance via organic growth. It serves over 24 million life policies and has 19,000 employees. As at September 2012, AIA’s market capitalisation was $ 44 billion, making it the world’s fifth largest apart from being the world’s largest independent listed pan-Asian Life insurance group.

“We were founded in Asia and we are one of the world’s leading insurers with an Asian focus,” said Tucker, who was previously the Group Chief Executive of Prudential Plc building it to be the UK’s largest quoted Life insurance company.

He also said AIA would further develop the existing business and the insurance industry deploying its world class products, technology and distribution expertise drawn from its Asian experience and success across China and India.

“In all markets we operate, we have remained a long-term investor and same goes to Sri Lanka. We will work closely with the Government, insurance regulator and our customers to add value,” Tucker said, adding AIA would also further develop the human resource base in Sri Lanka.