Sri Lanka Allianz unit expands into life

Nov 14, 2008 (LBO) – The Sri Lanka unit of Allianz Insurance, a German insurer, is expanding into life after making inroads in the corporate insurance market since it started three years ago, officials said. “We have achieved 257 percent growth in 2007 in general insurance business so now we want enter the life insurance market which has a low penetration rate in Sri Lanka,” says Surekha Alles chief executive Allianz Lanka.

Sri Lanka’s life insurance penetration is estimated 9.7 percent.

After starting in 2005, the firm had made pre-tax profits of 14.9 million rupees in the second year and 53.2 million rupees in the second year.

In 2007 general insurance premiums were 414 million rupees, Alles said.

“Currently we only deal in corporate business, especially with the banks,” she says.

“Most of our premium incomes are from project insurance, high value properties and large scale infrastructure insurance.”

The firm had insured the Arugam Bay bridge project, the Colombo-Matara highway project, Hyatt Residencies and the World Trade Centre Building.

In the life business, Allianz is offering retirement plans, children’s politics, group life for corporate clients and decreasing t