JXG to re-enter general insurance market with Rs. 5 b acquisition of Continental Insurance Lanka

Friday, 14 August 2026 06:04 - - {{hitsCtrl.values.hits}}

Signs SPA with Melstacorp to acquire 100% in three tranches beginning with controlling 81% stake
CILL posts GWP portfolio of Rs. 10.73 b, with investments at Rs. 6.64 b and total assets of Rs. 14.2 b as of end-Dec. 2025

Janashakthi PLC (JXG) yesterday said it has entered into a Share Purchase Agreement (SPA) with Melstacorp PLC (MELS), the sole shareholder of Continental Insurance Lanka Ltd., (CILL), to acquire a 100% stake in CILL, subject to the approval of the Insurance Regulatory Commission of Sri Lanka (IRCSL).

The transaction will see JXG acquire an initial 81% controlling stake, followed by the acquisition of the balance stake on a staggered basis, with 9% to be acquired in the first year and 10% in the subsequent year for a total consideration of over Rs. 5.14 billion.

JXG said this marks a significant step in expanding its footprint in the general insurance sector and delivering on the strategic commitments outlined at its Initial Public Offering (IPO).

The transaction positions JXG to re-enter a market where it has a strong legacy, further strengthening its position as one of Sri Lanka’s leading financial conglomerates and advancing its vision of building a fully integrated financial services ecosystem.

The acquisition is expected to further strengthen JXG’s financial services platform by combining its proven expertise, strong governance, and disciplined execution with CILL’s established market presence. Leveraging technology as a key differentiator, JXG aims to accelerate innovation, enhance customer experience, and deliver broader, more integrated financial solutions across its growing portfolio.

Ranked among Sri Lanka’s leading general insurers, CILL provides JXG with a strong platform for future growth.

As of the financial year ended 31 December 2025, CILL recorded a Gross Written Premium (GWP) portfolio of Rs. 10.73 billion, an investment portfolio of Rs. 6.64 billion, and total assets of Rs. 14.2 billion. The company brings with it a diversified general insurance business, an extensive distribution network comprising 61 business locations across the country, and a workforce of more than 700 employees.

The acquisition provides JXG with a strong foundation to further scale its insurance business while creating long-term value for customers, employees, and shareholders.

In 2018, Janashakthi sold its general insurance business, in a mega deal worth Rs. 16.5 billion, to global giant Allianz. At the time, it was the biggest sale in the insurance industry and one of the biggest corporate deals.

The buy-side adviser was KPMG and the sell-side adviser was CT Smith Capital.