Eagle Insurance paid some Rs. 145 mn for International Finance Corporations (IFC) 15 per cent stake in Union Assurance, in a deal that went through the Colombo bourse on Wednesday.
IFC has been trying to exit the holding for about a year now. Industry sources said John Keells Holdings and Carsons Cumberbatch together sharing a 73 per cent stake has been a deterrent for investors. rn
rnIndustry sources add that Eagle could talk to the two major shareholders on expanding its stake or on leverage Union Assurances key strength endash its general insurance portfolio. rn
rnEagle Insurance has a very strong life assurance arm, but is working overtime to improve its general insurance business. rn
rnUnion Assurance meanwhile has an average life insurance unit but scores high in the general insurance sector.rn
rnAs per industry figures for 2003 Eagle commands a 20 per cent market share in the life business and 8 per cent of the non-life sector. rn
rnMeanwhile, 10 per cent of the industries life busine